CapitaLand Ascott Trust buying overseas properties for S$530.8 million, plans S$300 million equity fundraising

CAPITALAND Ascott Trust (Clas) has announced plans to acquire three lodging assets from its sponsor at an agreed property value of S$530.8 million. It also intends to launch a fundraising exercise to raise at least S$300 million to partially fund the acquisition with the issue of new stapled securities.

The three assets are The Cavendish London hotel in the UK, the Temple Bar Hotel in Dublin, Ireland, and the Ascott Kuningan Jakarta serviced residence in Indonesia.

Clas’ manager said on Wednesday (Aug 2) that it expects the proposed acquisition to raise its total distribution by S$13.5 million and its distribution per stapled security (DPS) by 1.8 per cent on an FY2022 pro forma basis. It added that the earnings before interest, taxes, depreciation and amortisation (Ebitda) yield of the acquisition is 6.2 per cent on a FY2022 pro forma basis.