Capitaland Ascott Trust Divest Somerset Olympic Tower Tianjin Under Portfolio Reconstitution
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CapitaLand Ascott Trust (CLAS) has announced that it has entered into an agreement to divest Somerset Olympic Tower Tianjin in China to an unrelated third party.
The property, which comprises 185 units, is expected to be divested at above book value, according to CLAS.
Serena Teo, CEO of CapitaLand Ascott Trust HMN Management Limited and CapitaLand Ascott Business Trust Management, states: “As part of our portfolio reconstitution strategy, we continually divest mature properties such as Somerset Olympic Tower Tianjin and redeploy the proceeds towards more optimal uses.”
She adds that CLAS’ properties in China have contributed 1.4% to the group’s gross profit in the first half of the financial year 2024 (FY2024). The divestment of Somerset Olympic Tower Tianjin is expected to have minimal impact on CLAS’ gross profit.
This latest divestment follows CLAS’ previous divestments of approximately $400 million in assets year-to-date (YTD), according to the group. The divestments were made at a premium to book value, resulting in gains of approximately $54 million.
On October 1, CLAS had announced that proceeds from the divestment of Citadines Mount Sophia Singapore would go towards the proposed acquisition of lyf Funan Singapore at an EBITDA yield of 4.7%. Citadines Mount Sophia Singapore was divested in March at an exit yield of 3.2%.
Additionally, the group recently completed an asset enhancement initiative (AEI) for Citadines Holborn-Covent Garden London.
CLAS says that since the beginning of the year, it has completed AEIs for five of its properties, and has three properties in its AEI pipeline to be completed between the fourth quarter of FY2024 and 2026. These initiatives are expected to “enhance the quality of CLAS’ portfolio and uplift its distribution income”, according to the group.
Teo adds: “With CLAS’ strong financial position, we are poised to take advantage of opportunities to deliver accretive growth for our stapled security holders.”
This story was originally published on .
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Date: 13/10/2023
Headline: CapitaLand Ascott Trust divests Somerset Olympic Tower Tianjin in China at above book value
CapitaLand Ascott Trust (CLAS) has announced that it has entered into an agreement to divest Somerset Olympic Tower Tianjin in China to an unrelated third party at above book value.
The property, which comprises 185 units, is expected to be divested at a premium to its book value, according to CLAS.
Serena Teo, CEO of CapitaLand Ascott Trust HMN Management Limited and CapitaLand Ascott Business Trust Management, states: “As part of our portfolio reconstitution strategy, we continually divest mature properties such as Somerset Olympic Tower Tianjin and redeploy the proceeds towards more optimal uses.”
She adds that CLAS’ properties in China have contributed 1.4% to the group’s gross profit in the first half of the financial year 2024 (FY2024). The divestment of Somerset Olympic Tower Tianjin is expected to have minimal impact on CLAS’ gross profit.
This latest divestment follows CLAS’ previous divestments of approximately $400 million in assets year-to-date (YTD), according to the group. These divestments were made at a premium to book value, which resulted in gains of approximately $54 million.
On October 1, CLAS announced that proceeds from the divestment of Citadines Mount Sophia Singapore would be used to acquire lyf Funan Singapore at an EBITDA yield of 4.7%. The property was divested in March at an exit yield of 3.2%.
Additionally, the group recently completed an asset enhancement initiative (AEI) for Citadines Holborn-Covent Garden London.
Since the beginning of the year, CLAS has completed AEIs for five of its properties, and has three properties in its AEI pipeline to be completed between the fourth quarter of FY2024 and 2026. These initiatives are expected to “enhance the quality of CLAS’ portfolio and uplift its distribution income”, according to the group.
Teo adds: “With CLAS’ strong financial position, we are poised to take advantage of opportunities to deliver accretive growth for our stapled security holders.”
This article was originally published on .
Burkhard is a freelance writer and designer based in Singapore. When he’s not writing about the latest in technology and business, he’s creating graphics and designs for websites and marketing collaterals.
