Ascott Reit to acquire seven assets in Australia and Japan for S$298.3m

ASCOTT Residence Trust (Ascott Reit) will acquire three serviced residences and four rental housing properties in Australia and Japan for S$298.3 million, which are expected to increase Ascott Reit's distribution income for FY2014 by S$3.9 million and distribution per unit by 2.9 per cent from 8.20 cents to 8.44 cents on a pro forma basis.

Specifically, Ascott Reit will acquire the 380-unit Citadines on Bourke Melbourne from The Ascott Limited (Ascott) for A$158.5 million (S$167.6 million). In addition, the Reit will acquire the remaining 40 per cent interest in the 160-unit Citadines Shinjuku Tokyo and 124-unit Citadines Karasuma-Gojo Kyoto for 3.04 billion yen (S$33.7 million) and 1.44 billion yen (S$16 million) respectively from Ascott. The three serviced residences will continue to be managed by Ascott.

In addition, Ascott Reit will acquire four rental housing properties in Osaka for 7.3 billion yen (S$81 million). Ascott currently holds an 18.9 per cent stake in the four rental housing properties.

Ascott Reit will seek unitholders' approval for the transactions at an extraordinary general meeting to be held on July 24, 2015.