Ascott Reit to raise S$442.7m to buy three properties

Singapore

ASCOTT Residence Trust (Ascott Reit) has launched a fully underwritten renounceable rights issue to raise S$442.7 million, which will be used to buy two properties in Germany and one property in Singapore.

Announcing this in a press statement last evening, Ascott Reit said the funds will be used partly to buy two properties in Germany from The Ascott Limited (Ascott) for 65.4 million euros (S$97.2 million), while the remaining S$381.6 million will be used to buy Ascott Orchard Singapore.

The acquisitions of the two operating serviced residences, Citadines City Centre Frankfurt and Citadines Michel Hamburg, are accretive at an Ebitda (earnings before interest, taxes, depreciation and amortisation) yield of 5.4 per cent.…