CapitaLand Ascott Trust is seeking to raise at least SGD300 million, which will be partially deployed to fund the acquisition of three lodging assets.

The trust disclosed on 2 August that it was acquiring three lodging assets in the UK, Ireland and Indonesia for SGD530.8 million.

These assets are namely The Cavendish London, Temple Bar Hotel in Dublin, and a serviced residence in Jakarta, Ascott Kuningan Jakarta.

To partialy fund these acquisitions, the trust will carry out a private placement of between 187,794,000 and 192,123,000 new units at an issue price of between SGD1.041 and SGD1.065 each.

This would raise gross proceeds of no less than approximately SGD200 million.

In addition to this, the trust will undertake preferential offering of up to 100,538,407 new units at an issue price of between SGD1.025 and SGD1.044 each.

This would raise gross proceeds of approximately SGD100.0 million.

Besides the acquisition, proceeds from the fundraising exercise will also be deployed towards financing renovations of its assets in Australia, the UK.

CapitaLand Ascott Trust was last done on the Singapore Exchange at SGD1.12 before the trading halt on 2 August, which presently implies a distribution yield of 5.06% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.