Ascott Residence Trust (ART) has sold Ascott Guangzhou in China and Citadines Didot Montparnasse Paris in France to two unrelated third parties respectively, for a total of about S$191.4 million.
ART is expected to realise total estimated net gains of about S$23.2 million upon the completion of both transactions.
For Ascott Guangzhou in China, the divestment price of RMB 780 million (S$155 million) is about 52% above the property’s book value and about 81.0% higher than the acquisition price in 2012. ART is expected to realise estimated net gains of about S$19.4 million upon the completion of the transaction in 1Q 2021.
For Citadines Didot Montparnasse Paris in France, the divestment price of EUR 23.6 million (S$36.4 million) is about 69% above the property’s book value and about 60.4% higher than the acquisition price in 2010. ART is expected to realise estimated net gains of about S$3.8 million upon completion of the transaction in 4Q 2020.
Ms Beh Siew Kim, Chief Executive Officer of the Managers of ART, said: “Despite the COVID-19 situation, the opportunistic sale of Ascott Guangzhou and Citadines Didot Montparnasse Paris at an attractive price allows ART to rejuvenate its portfolio and unlock the strong underlying value of these properties. We will look out for opportunities to deploy the proceeds to other higher yielding assets for ART. The proceeds may also be used to pare down ART’s debt and reduce its gearing, as distribution to stapled securityholders, or for general corporate purposes.”
Ms Beh added: “In 2019, in line with ART’s strategy to continuously enhance the portfolio, we have unlocked more than S$200 million in net gains and added approximately S$1.9 billion in asset value through the acquisition of quality assets. During these uncertain times, we will continue to be prudent in managing our capital and cash flow, as well as ensure that ART remains resilient with its geographically diversified portfolio focused on the long-stay segment.”
In China, ART has six other properties which include Somerset Grand Central Dalian, SomersetIn China, ART has six other properties which include Somerset Grand Central Dalian, SomersetHeping Shenyang, Somerset Olympic Tower Tianjin and Somerset Xu Hui Shanghai.
In France, ART has 16 other properties across the country in cities such as Cannes, Grenoble,In France, ART has 16 other properties across the country in cities such as Cannes, Grenoble,Lille, Lyon, Marseille, Montpellier and the capital city of Paris. This includes Citadines CroisetteCannes, Citadines City Centre Grenoble, Citadines City Centre Lille, Citadines Presqu’île Lyon,Citadines Castellane Marseille, Citadines Antigone Montpellier, Citadines Les Halles Paris andLa Clef Louvre Paris.
Ascott Guangzhou has been operational for 12 years. ART acquired Ascott Guangzhou from TheAscott Guangzhou has been operational for 12 years. ART acquired Ascott Guangzhou from TheAscott Limited for RMB 431 million in 2012. Located in the city’s financial hub of Tianhe, the207-unit luxury serviced residence is surrounded by high-end office towers, multiple retail anddining options. The property is also close to two subway lines and Guangzhou’s East RailwayStation, offering convenient access to various tourist destinations and other key landmarks in thecity.
Citadines Didot Montparnasse Paris was one of the 28 properties ART acquired from The AscottCitadines Didot Montparnasse Paris was one of the 28 properties ART acquired from The AscottLimited for a total sum of S$1.39 billion in 2010. Citadines Didot Montparnasse Paris is locatedin the 14th arrondissement of France’s capital city. From the 80-unit serviced residence, guestscan explore multiple open-air markets for unique souvenirs or unwind at the lush Georges-Brassens park nearby. The property is also close to numerous bus routes, providing easy accessto the rest of Paris and its exciting tourist attractions.
Ascott Residence Trust (ART) is the largest hospitality trust in Asia Pacific with an asset valueAscott Residence Trust (ART) is the largest hospitality trust in Asia Pacific with an asset valueof S$7.4 billion as at 31 December 2019. Having listed on the Singapore Exchange SecuritiesTrading Limited (SGX-ST) since March 2006, ART’s objective is to invest primarily in incomeproducingreal estate and real estate-related assets which are used or predominantly used asserviced residences, hotels, rental housing properties and other hospitality assets in any countryin the world. ART is a constituent of the FTSE EPRA Nareit Global Real Estate Index Series(Global Developed Index).
As at 31 March 2020, ART’s international portfolio comprises 88 properties with more than16,000 units in 39 cities across 15 countries, predominantly in the developed cities of AsiaPacific, Europe and the United States of America.
ART’s properties are mostly operated under the Ascott The Residence, Somerset, Quest andART’s properties are mostly operated under the Ascott The Residence, Somerset, Quest andCitadines brands. They are mainly located in key gateway cities such as Barcelona, Berlin,Brussels, Guangzhou, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, London, Manila,Melbourne, Munich, New York, Paris, Perth, Seoul, Shanghai, Singapore and Tokyo.
ART is a stapled group comprising Ascott Real Estate Investment Trust (Ascott Reit) and AscottBusiness Trust (Ascott BT). ART is managed by Ascott Residence Trust Management Limited(as manager of Ascott Reit) and Ascott Business Trust Management Pte. Ltd. (as trustee-managerof Ascott BT), both of which are wholly owned subsidiaries of Singapore-listed CapitaLandLimited, one of Asia’s largest diversified real estate groups.