Ascott issues 3.7m units at $1.2961 per unit

Check out its 2 purposes.

According to a release by Ascott, the Company is entitled to receive such number of Units from Residence Trust for all trades on the Singapore Exchange Securities Trading Limited.

Ascott Residence Trust Management Limited, as manager of Ascott Residence Trust, wishes to announce that 3,715,284 units in Ascott REIT have been issued to the Company on 11 December 2012 at S$1.2961 per Unit. The issue price per Unit is the volume weighted average price for a Unit for all trades on the Singapore Exchange Securities Trading Limited in the ordinary course of trading for the period of five business days preceding 11 December 2012.

The 3,715,284 Units were issued for the following purposes pursuant to the trust deed dated 19 January 2006 constituting Ascott REIT.

(1) 2,330,360 Units were issued to the Company as payment of the Acquisition Fee in relation to the completion of the acquisition of two serviced residence properties, namely Ascott Raffles Place Singapore and Ascott Guangzhou.

(2) 1,384,924 Units were issued to the Company as payment of the Divestment Fee in relation to the completion of the divestment of the property known as Somerset Grand Cairnhill.

Under the Trust Deed, the Company is entitled to receive such number of Units as may be purchased for the relevant amounts of the Acquisition Fee and Divestment Fee, being 1.0 and 0.5 percent of the Enterprise Value of the Acquisitions and the Divestment respectively.

The manner of payment of the Acquisition Fee and Divestment Fee is disclosed in (i) the Trust Deed; (ii) the Ascott REIT Prospectus dated 6 March 2006; and (iii) Ascott REIT’s Circular to unitholders dated 9 July 2012 on inter alia, the Acquisitions and Divestment. With the above-mentioned issue of Units, the Company holds an aggregate of 53,629,534 Units, representing 4.69% of the total number of Units in issue of 1,142,818,694.

The value of Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by the Company, as manager of Ascott REIT, or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested.