CapitaLand toughens holding units in Ascott Reit

In an effort to organize asset ownership, the property giant transfers its entire interest in Somerset Capital to The Ascott Limited.

CapitaLand Limited on Friday announced on Friday that it has rationalised and consolidated its holding of units in Ascott Residence Trust (Ascott Reit) by transferring its entire interest in Somerset Capital Pte Ltd (SCPL) to The Ascott Limited (TAL).

According to the announcement, CapitaLand has an interest of 47.74% (comprising 295,798,484 units) in Ascott Reit through its wholly-owned subsidiaries, SCPL holding 18.33% (comprising 113,569,202 units), TAL holding 26.77% (comprising 165,843,426 units) and Ascott Residence Trust Management Limited (ARTML) holding 2.64% (comprising 16,385,856 units).

Prior to the Transfer, SCPL and TAL were directly owned by CapitaLand and ARTML was directly owned by TAL. Following the Transfer, TAL is directly owned by CapitaLand while SCPL and ARTML are directly owned by TAL.

The consolidation, CapitaLand said, was to align the asset ownership of CapitaLand’s serviced residence business under TAL. It would also help the CapitaLand Group achieve more focused and effective management of its serviced residence assets and hospitality business.

In consideration for the Transfer, TAL’s total issued shares have thereby increased from 1,810,437,298 ordinary shares to 2,000,921,000 ordinary shares.