France: CapitaLand Ascott Trust (CLAS) has divested four Citadines properties in regional France to an unrelated third party for €44.4 million.
Citadines Croisette Cannes, Citadines Prado Chanot Marseille, Citadines Castellane Marseille and Citadines City Centre Lille were divested at 63 per cent above book value, representing net proceeds of €34.1 million.
The exit yield sits around four per cent with CLAS receiving a net gain of approximately €1.2 million.
CLAS now owns 12 properties in France, two of which are undergoing asset enhancement initiative (AEI) including refurbishments of guest rooms and public areas. La Clef Tour Eiffel Paris and Citadines Les Halles Paris will remain open during this time.
Serena Teo, CEO of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management (the managers of CLAS), said: “We have divested the four mature properties as part of our active portfolio reconstitution strategy to deliver sustainable returns to our stapled securityholders. As these properties have reached the optimal stage of their life cycles, the divestment enables CLAS to redeploy the proceeds to higher-yielding assets.”
She continued: “Proceeds from the divestment will be used for our AEI in Europe. It will also be used to partially finance CLAS’ recent proposed acquisition of three prime lodging assets in the capital cities of London, Dublin and Jakarta.”
In August 2023, CLAS signed a Memorandum of Understanding (MOU) with its sponsor, The Ascott Limited, for a proposed accretive acquisition of three assets – The Cavendish hotel in London; The Temple Bar Hotel in Dublin; and the serviced residence Ascott Kuningan Jakarta – at an agreed property value of S$530.8 million.
“Post-renovation for The Cavendish London and Temple Bar Hotel as well as Milestone Payments for the acquisition, we expect to achieve an increased yield of 6.8 per cent,” added Teo.
