Ascott Residence Trust Management, the manager of Ascott Residence Trust or Ascott REIT, says it has signed a sale and purchase agreement to divest the trust beneficiary interest of six properties under the portfolio of ARC-CapitaLand Three Tokutei Mokuteki Kaisha (TK3) to an unrelated third party.
The properties are Grand E'terna Nijojomae and Grand E'terna Chioninmae in Kyoto; Grand E'terna Saga and Grand E'terna Saga Idaidori in Saga; and Grand Mire Miyamachi and Grand Mire Shintera in Sendai.
The aggregate purchase consideration of the properties is JPY4.48 billion ($52.6 million).
The estimated net gain from the sale is $3.4 million of which the net sale proceeds may be used for asset enhancement, capital expenditure, funding potential acquisitions, other general corporate purposes or distribution of any part to unitholders.
TK3 will be left with five properties in its portfolio after the disposal.
Ascott Residence Trust Management says the sale is in line with Ascott REIT’s active asset management strategy to unlock the underlying value of the properties which offers limited growth and re-deploy proceeds in other higher yielding assets to enhance Ascott REIT’s portfolio.
“Moreover, the properties are more than 10 years old and are located in regional cities of Japan where there is limited potential upside. Given the current strong investor demand for rental housing properties, it is an opportune time for Ascott REIT to divest these properties at an attractive price,” Ascott Residence Trust Management says in an SGX filing,
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The properties are Grand E'terna Nijojomae and Grand E'terna Chioninmae in Kyoto; Grand E'terna Saga and Grand E'terna Saga Idaidori in Saga; and Grand Mire Miyamachi and Grand Mire Shintera in Sendai.
The aggregate purchase consideration of the properties is JPY4.48 billion ($52.6 million).
The estimated net gain from the sale is $3.4 million of which the net sale proceeds may be used for asset enhancement, capital expenditure, funding potential acquisitions, other general corporate purposes or distribution of any part to unitholders.
TK3 will be left with five properties in its portfolio after the disposal.
Ascott Residence Trust Management says the sale is in line with Ascott REIT’s active asset management strategy to unlock the underlying value of the properties which offers limited growth and re-deploy proceeds in other higher yielding assets to enhance Ascott REIT’s portfolio.
“Moreover, the properties are more than 10 years old and are located in regional cities of Japan where there is limited potential upside. Given the current strong investor demand for rental housing properties, it is an opportune time for Ascott REIT to divest these properties at an attractive price,” Ascott Residence Trust Management says in an SGX filing,
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