Singapore: CapitaLand Ascott Trust (CLAS) has sold the Citadines Mount Sophia Singapore to Hong Kong-based owner-operator Weave Living and US-based asset manager BlackRock.
CLAS revealed it divested Citadines Mount Sophia Singapore for S$148 million at 19 per cent above book value with an exit yield of about 3.2 per cent. The divestment is expected to complete in Q1 2024.
The 154-unit property is located at 8 Wilkie Road. Weave Living announced it had acquired the site with BlackRock for S$188 million.
It marks the second location in Singapore for Weave Living and will become the group’s flagship in the city. Following a refurbishment the property will relaunch in early 2025 as Weave Suites – Hillside offering a range of studio and one-bedroom apartments.
Sachin Doshi, founder and group CEO of Weave Living, said: “Following the successful launch of Weave Suites – Midtown last year, we have witnessed overwhelming demand for our beautifully-curated, professionally-managed accommodation solutions in the city. We welcome BlackRock as our latest joint venture partner as we accelerate our expansion throughout the region and grow our institutional asset management business throughout APAC.”
Serena Teo, CEO of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (the managers of CLAS), said: “We are divesting Citadines Mount Sophia Singapore at close to S$1 million per key, which is a significant premium to book value. Including Citadines Mount Sophia Singapore, CLAS has announced divestments of S$408.1 million of assets at a premium to book value in the last eight months. The divestment of 10 mature assets will unlock S$38.9 million in gains, at an average exit yield of about 3.8 per cent.
“We aim to use the capital to reduce debt, fund our asset enhancement initiatives (AEI) or redeploy it into higher-yielding investments to increase the returns of our portfolio. The divestments can offer CLAS greater financial flexibility, potentially lowering our gearing by close to two percentage points,” she added.
