Ascott Divests Somerset Roppongi Tokyo To Ascott Residence Trust For S$21 Million
Singapore, 4 September 2006 – The Ascott Group (Ascott), through its directly wholly-owned subsidiary, The Ascott Holdings Limited, has signed a conditional sale and purchase agreement with Ascott Residence Trust (ART). The agreement is to divest Ascott’s 40 per cent stake in Somerset Roppongi Tokyo to ART at a proportionate (40 per cent) enterprise value of ¥1.48 billion (approximately S$20.7 million). Ascott will realise a net divestment gain of S$0.3 million.
The remaining 60% stake in Somerset Roppongi Tokyo is held by Ascott’s joint venture partner in Japan, Mitsubishi Estate Co Ltd, one of Japan’s largest real estate developers.
The sale consideration for the transaction is S$9.1 million. This is based on a proportionate (40 per cent) enterprise value of S$20.7 million (or ¥1.48 billion) and other consolidated net assets of Somerset Roppongi (Japan) Pte Ltd (SRJPL), and after deducting the consolidated bank debt of approximately S$12 million (or ¥0.86 billion). SRJPL is an indirectly wholly-owned subsidiary of Ascott which presently owns the 40 per cent stake in Somerset Roppongi Tokyo.
The divestment of Somerset Roppongi Tokyo is in line with Ascott’s strategy of focusing on management services and injecting into ART its yield–accretive pan-Asian serviced residences.
Mr Cameron Ong, Ascott's Managing Director and CEO said, “There is strong synergy between Ascott and ART. With ART, Ascott will be able to further unlock shareholder value by using proceeds from the divestments to acquire and develop potential higher-yielding assets for future injections into ART.”
Somerset Roppongi Tokyo will continue to be managed by Ascott International Management Japan Co Ltd, a 60:40 joint venture between Ascott and Mitsubishi Estate Co Ltd.
Somerset Roppongi Tokyo, which was opened in July 2002, has a gross floor area of approximately 4,868 square metres. It comprises studio, one and two bedroom units.
Ascott also manages the 79-unit Somerset Azabu East located at No. 1-9-11, Higashi-Azabu, Minato-ku, Japan.
About The Ascott Group
The Ascott Group is the largest international serviced residence owner-operator outside the United States with close to 17,000 serviced residence units in key cities of Asia Pacific, Europe and the Gulf Region. The Group operates three brands – Ascott, Somerset and Citadines in 44 cities in 18 countries.
The Ascott Group is headquartered in Singapore. It pioneered Asia Pacific's first branded luxury serviced residence in 1984. It also established the world’s first Pan-Asian serviced residence real estate investment trust, Ascott Residence Trust in 2006.
Listed on the mainboard of the Singapore Exchange, The Ascott Group is the serviced residence arm of CapitaLand Limited, one of Asia’s largest listed property companies.
About Ascott Residence Trust
The Ascott Residence Trust is the first pan-Asian serviced residence real estate investment trust (REIT) established with the objective of investing primarily in real estate and real estate-related assets which are income-producing and which are used or predominantly used, as serviced residences or rental housing properties in the Pan-Asian Region.
Comprising an initial asset portfolio of over 2,000 units in 12 strategically located serviced residences and rental housing property in Singapore, China, Indonesia, the Philippines and Vietnam, ART was listed with an asset size of about S$856 million.
Launched in March 2006, ART is managed by the Ascott Residence Trust Management Limited, a wholly-owned subsidiary of The Ascott Group Limited. Listed on the mainboard of the Singapore Exchange, The Ascott Group Limited is a leading international serviced residence company with close to 17,000 serviced residence units in key cities of the Asia-Pacific region, Europe and the Middle East. Ascott boasts a 22-year industry track record and serviced residence brands that enjoy recognition worldwide.
For more information about ART, please visit https://www.ascottreit.com.
Celina Low, Vice President, Corporate Communications
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Joan Tan, Senior Manager, Corporate Communications
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Lilian Goh, Head, Investor Relations
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