CapitaLand divests four properties in France for $64.7m

The divestment is part of CLAS’ ongoing efforts to enhance its portfolio.

CapitaLand Ascott Trust (CLAS) has completed the divestment of four mature serviced residences in regional France to an unrelated third party for a total of €44.4m ($64.7m).

The four properties are Citadines Croisette Cannes, Citadines Prado Chanot Marseille, Citadines Castellane Marseille, and Citadines City Centre Lille. The properties were divested at 63% above book value, bringing net proceeds of  €34.1m ($49.7m).

“Proceeds from the divestment will be used for our AEI (average earnings index) in Europe. It will also be used to partially finance CLAS’ recent proposed acquisition of three prime lodging assets in the capital cities of London, Dublin, and Jakarta,” Serena Teo, CEO of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd., the Managers of CLAS, said.

Following the divestment, CLAS will still have 12 properties in France, all of which are predominantly located in Paris, including La Clef Tour Eiffel Paris and Citadines Les Halles Paris that are undergoing asset enhancement initiative (AEI) to uplift their value and profitability. 

According to Teo, the recent proposed acquisition will further increase CLAS’ total distribution by $13.5m and its Distribution per Stapled Security (DPS) by 1.8% on an FY 2022 pro forma basis upon completion of the acquisition. 

The EBITDA yield of the proposed acquisition is 6.2% on an FY 2022 pro forma basis, more than 2% higher than the exit yield from the divestment of the four properties in regional France.