Ascott Residences Trust to acquire nine properties in five countries

The estimated costs of the acquisitions totaled $318.3m.

Ascott Residences Trust (ART) is proposing to acquire nine properties comprising of serviced residences, rental housing and student accommodation across five countries for a total of $318.3m.

ART said the yield-accretive acquisition will increase its distribution by $9.2m and it's pro forma FY 2021 Distribution per Stapled Security by 2.8%.

The assets are predominantly located in Asia, with seven of the assets in Australia, Japan, and Vietnam whilst one asset each located in France and the USA. The acquisition is set to grow ART’s total assets to $8.3b.

Three of the assets are serviced residences, namely Quest Cannon Hill in Brisbane, Australia and la Clef Tour Eiffel Paris in France that are on master leases; and Somerset Central TD Hai Phong City in Hai Phong, Vietnam which caters mainly to corporate guests and has an average length of stay of 11 months.

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The five rental housing properties in Japan have typical lease tenures of about two years. They are in Kyoto, Osaka, Hyogo and Nagoya. The acquisition will expand ART’s footprint to Hai Phong, Hyogo and Nagoya, further diversifying its portfolio.

In its USA acquisition, ART will be doubling its stake in Standard at Columbia by acquiring an additional 45% stake in the student accommodation property. ART reported that its portfolio of operating student accommodation properties in the USA have achieved a strong occupancy rate of over 95%. Currently, under development, Standard at Columbia is slated for completion in Q2 2023. 

The acquisition of nine properties is expected to be completed by November 2022, subject to securityholders’ approval the the next extraordinary general meeting on 9 September.