CLAS seeks acquisition of $530.8m lodging assets in the UK, Dublin, and Jakarta

The proposed acquisition is 1.8% accretive to Distribution per Stapled Security (DPS).

CapitaLand Ascott Trust inked an MOU with its sponsor, The Ascott Limited (Ascott), seeking a DPS-accretive acquisition of three lodging assets in the United Kingdom, Ireland and Indonesia.

The properties include a hotel in London, The Cavendish London; a hotel in Dublin, Temple Bar Hotel; and a serviced residence in Jakarta, Ascott Kuningan Jakarta. 

The acquisition can enhance CLAS’ income streams and capitalise on the travel recovery and robust lodging demand.

Once completed, the acquisition will help CLAS increase its total distribution by $13.5m and its DPS by 1.8% on an FY 2022 pro forma basis.

CLAS also reported that its two existing properties in central Sydney and London will undergo asset enhancement initiatives (AEIs) with estimated yields on AEI cost of approximately 11%.