CapitaLand Ascott Trust (CLAS) is selling Citadines Mount Sophia Singapore to an unrelated third party for S$148 million (US$110.8 million). The sale is expected to be completed in the first quarter of 2024.
The 154 properties will be sold for 19.4% above book value, with net proceeds expected to be approximately S$138.6 million. The exit yield is approximately 3.2% and CLAS will recognize a net profit of approximately S$14.6 million.
CLAS is selling 10 maturing assets, which will result in a gain of S$38.9 million. The funds will be used to reduce debt, fund asset enhancement initiatives (AEI) or reallocate to higher-yielding investments.
Serena Teo, CEO of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management (managers of CLAS) said: . CLAS, which includes Citadines Mount Her Sophia Singapore, has announced that it has sold S$408.1 million of her assets over book value in the past eight months.
“For the past three years, the distribution income from our investments has more than compensated for the distribution income from sold properties. CLAS has eight properties undergoing or scheduled to undergo AEI. ”
CLAS also completed the sale of Courtyard by Marriott Sydney North Ryde on 31 January. This is one of two mature hotels in CLAS’s sale pipeline in Australia. The sale of his other property, Novotel Sydney and his Parramatta, is expected to be completed in Q3 2024.
After the sale, CLAS will have four lodging properties in Singapore. CLAS has three of his operating properties: Ascott Orchard Singapore, Life One North Singapore and The Robertson House by the Crest Collection. The 192 serviced residences in Somerset currently under development are on track for completion in the second half of 2025.