Singapore

IN ITS maiden foray into Korea, Ascendas Hospitality Trust (A-HTRUST) has, through Ascendas Hospitality Business Trust, entered into a sale and purchase agreement with KY-Development Co to acquire a majority stake in KY-Heritage Hotel Dongdaemun for 72.1 billion won (S$89.5 million).

It will hold a 98.7 per cent stake in the 215-room hotel, while the remainder will be held by Ascendas (Korea), which is a wholly-owned subsidiary of Ascendas Land International (ALI). ALI is a controlling stapled security-holder and sponsor of A-HTrust, which is a stapled group comprising the business trust as well as Ascendas Hospitality Reit. The total purchase consideration works out to 73 billion won. The purchase price is at a 3.2 per cent discount to the four-star hotel's latest valuation and translates to a pro forma net property income yield of 4.1 per cent, A-HTRUST said in a release on Friday. CBRE Korea Co valued the property at 75.4 billion won as at March 30, 2018.