SINGAPORE: CapitaLand Ascott Trust (CLAS) has sold Citadines Mt Sophia Singapore to Hong Kong-based owner-operator Weave Living and US-based asset manager BlackRock.
CLAS announced that it has sold Citadines Mount Sophia Singapore for S$148 million, 19% above book value, at a sales yield of approximately 3.2%. The sale is expected to be completed in the first quarter of 2024.
The 154-unit property is located at 8 Wilkie Road. Weave Living announced that it had acquired the site from BlackRock for S$188 million.
This will be Weave Living’s second location in Singapore and the group’s flagship store in the city. Following renovations, the property will reopen in early 2025 as Weave Suites – Hillside, offering a wide range of studio and one-bedroom apartments.
Sachin Doshi, Founder and Group CEO of Weave Living, said: “Since the successful launch of Weave Suites – Midtown last year, we have seen overwhelming demand for beautifully curated and professionally managed accommodation solutions across the city. We welcome BlackRock as our newest joint venture partner as we accelerate our expansion into Asia Pacific and grow our institutional wealth management business across APAC.”
Serena Teo, CEO of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. “We are selling Citadines Mount Sophia Singapore for close to S$1 million per key, which is significantly above book value.” CLAS, which includes Citadines Mount Sophia Singapore, has sold off book value over the past eight months. announced the sale of assets worth S$408.1 million. The sale of the 10 maturing assets will give him a profit of S$38.9 million at an average exit yield of about 3.8%.
“We aim to use this capital to reduce debt, fund asset enhancement initiatives (AEI), or reallocate to higher-yield investments to enhance portfolio returns. By selling CLAS ‘s financial flexibility and could reduce our gearing by nearly 2 per cent,” she added.