Ascott REIT acquires Manhattan asset for S$220.7m

Ascott Residence Trust (Ascott REIT) will acquire a prime property in Times Square, New York for US$163.5 million (S$220.7 million), it announced in a news release on Thursday (Jul 2).

The acquisition – the REIT’s first in US – of the 411-room Element New York Times Square West hotel will yield an EBITDA of 6.2 per cent, and it is expected to increase Ascott REIT’s distribution income in the 2014 financial year by US$800,000 (S$1.08 million), it said.

Mr Lim Jit Poh, Chairman of Ascott REIT, said the acquisition will provide a “strong foothold” to expand the company’s presence in US.

After the acquisition, the property will continue to be operated by LG-39 Management LLC and its affiliates under the Element brand through a franchise by Starwood Hotels & Resorts Worldwide, Inc, according to Mr Ronald Tay, CEO of Ascott REIT.

Ascott REIT has recently acquired seven property assets – three serviced residences and four rental housing properties – in Australia and Japan for S$298.3 million last month.

Source : Channel NewsAsia – 2 Jul 2015

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