Ascott Residence Trust (Ascott Reit) has entered into a conditional sale and purchase agreement to buy a 60 percent stake in the 124-unit Citadines Karasuma-Gojo Kyoto (Citadines Kyoto) from Mitsubishi Estate Co Ltd and Citadines Ippan Shadan Hojin for S$19.0 million.
The balance 40 percent interest is held by The Ascott Limited.
The acquisition will be wholly funded by borrowings.
Following this transaction, Ascott Reit’s gearing will be at 40.9 percent.
Citadines Kyoto is a 10-storey building with one basement and comprises 124 apartments.
Located in central Kyoto, the freehold serviced residence has a gross floor area of approximately 4,835 square metres.
It opened for business in March 2010.
It is currently managed by Ascott International Management (Japan) Company Limited (AIM Japan) and will continue to be managed by AIM Japan following the acquisition.
Source : Channel NewsAsia – 8 Mar 2012