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ASCENDAS Hospitality Trust (AHTrust) said on Thursday that it will pay A$120 million (S$124 million) for the serviced apartments component of a mixed-use development at 224-252 La Trobe Street, Melbourne, Australia.
The property is freehold and comprises 252 units of apartments, on levels 10 to 32 of the 92-storey development.
It was valued by CBRE at A$128 million, AHTrust said.
The trust will buy the property from a unit of Malaysian developer UEM Sunrise.
The acquisition is expected to be accretive to the trust's distribution per stapled security (DPS).
It is estimated to contribute net property income (NPI) of A$9.1 million in its first year of operation, translating to an estimated NPI yield of 7.6 per cent.
The property is expected to be completed in the second half of 2019.
AHTrust last traded at S$0.645.