Singapore: Ascott Residence Trust has entered into two conditional agreements to divest Ascott Guangzhou and Citadines Didot Montparnasse Paris.
The sales, to two unrelated third parties, will total around US$136 million. ART is expected to realise total estimated net gains of about $16.5 million upon the completion of both transactions.
For Ascott Guangzhou in China, the divestment price of $110 million is around 52 per cent above the property’s book value and around 81 per cent higher than the acquisition price in 2012.
For Citadines Didot Montparnasse Paris in France, the divestment price of $26 million is about 69 per cent above the property’s book value and about 60.4 per cent higher than the acquisition price in 2010.
Beh Siew Kim, CEO of the managers of ART, said: “Despite the COVID-19 situation, the opportunistic sale of Ascott Guangzhou and Citadines Didot Montparnasse Paris at an attractive price allows ART to rejuvenate its portfolio and unlock the strong underlying value of these properties. We will look out for opportunities to deploy the proceeds to other higher yielding assets for ART. The proceeds may also be used to pare down ART’s debt and reduce its gearing, as distribution to stapled securityholders, or for general corporate purposes.”
“In 2019, in line with ART’s strategy to continuously enhance the portfolio, we have unlocked more than S$200 million in net gains and added approximately S$1.9 billion in asset value through the acquisition of quality assets. During these uncertain times, we will continue to be prudent in managing our capital and cash flow, as well as ensure that ART remains resilient with its geographically diversified portfolio focused on the long-stay segment,” she added.
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