Ascott Reit makes forays into KL, Wuhan and Xi'an

ASCOTT Reit has signed conditional deals to acquire its first serviced residences in Kuala Lumpur and the Chinese cities of Wuhan and Xi'an for a total property value of $173.9 million. The consideration includes a debt component of $42.3 million.

On a pro forma basis, the acquisitions are expected to raise its FY13 distribution per unit (DPU) from 8.71 cents to 8.81 cents, and generate an Ebitda (earnings before interest, taxes, depreciation and amortisation) yield of 5.1 per cent for FY13.

Ascott Reit will acquire the 207-unit Somerset Ampang Kuala Lumpur from its sponsor, The Ascott, for RM175 million (S$68.4 mill…