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Ascott Reit to sell Raffles Place property for S$353 million
Ascott Residence Trust (Ascott Reit) has agreed to sell its Ascott Raffles Place Singapore property for S$353.3 million to an unrelated third party.
The sale price is 64.3 per cent above the property’s latest valuation of S$215 million as at 31 December 2018, according to a statement. Ascott Reit bought the property for S$220 million in 2012. The deal is expected to be completed in May this year.
Ascott Reit is expected to realise an estimated net gain of S$134 million. Net proceeds from the sale may be used for new investment opportunities that will offer better growth prospects for Ascott Reit.
As Ascott Raffles Place Singapore accounts for 3 per cent of Ascott Reit’s gross profit for the nine months ended 30 September 2018, the sale is not expected to have a material impact on the company’s financial performance.
“We may also use the sale proceeds to pay down debt which will then increase our debt headroom for potential acquisitions of quality assets or to develop our own properties such as lyf one-north Singapore to enhance Ascott Reit’s portfolio,” said Beh Siew Kim, chief executive officer of Ascott Residence Trust Management Ltd.
Ascott Reit’s other operational properties in Singapore are Ascott Orchard Singapore, Citadines Mount Sophia Singapore and Somerset Liang Court Singapore.
lyf one-north Singapore is expected to open in 2021.
