CapitaLand Ascendas REIT divests local industrial building at 219% premium from 2005 purchase price

CLAR manager has decided to divest the KA Place property in Singapore at a 219% premium to its purchase price of $11.1 million in 2005. For a consideration of $35.38 million, HSBC Institutional Trust Services (Singapore) has entered into a sale and purchase agreement with KA Place SPV 1.The seven-storey high-specification industrial building offers 10,163 sq m in total gross floor area and a remaining land lease tenure of approximately 35 years. According to the manager, the divestment is in line with the REIT’s active asset management policy and is meant to improve its portfolio and optimise returns for unitholders.

If the divestment is completed on Jan 1, 2022, the pro-forma impact on the REIT’s net property income and distribution per unit would be a reduction of $0.92 million and 0.005 Singapore cents respectively. The net proceeds are estimated to be $30.65 million, which could be used to fund committed …

Ascott targets to double fee revenue to over $500 mil in next five years

The Ascott Limited, the lodging business unit of CapitaLand Investment, has set an ambitious target to double its fee revenue to over $500 million from its FY2022 base of $258 million in the next five years. This is its highest recorded earnings yet, bolstered by 36% year-on-year growth in FY 2022, a result of record-breaking property openings and signings.

The company has achieved its goal of securing 160,000 units by 2023. In 1QFY 2023, it signed up to 4,000 additional ones.

Ascott will continue to expand its portfolio offerings, ranging from serviced residence, hotel, co-living as well as senior living brand and positioning, while aiming for an annual net room growth rate of 8%-10% within the next five years. These plans, coupled with the company’s asset-light strategy, will lead to strengthening fee growth and drive the company to the fore.

According to Kevin Goh, CEO of CLI Lodging and Ascott, …