Ascott Residence to buy properties for $970m

Ascott Residence Trust, the serviced apartment operator partly owned by CapitaLand, said it will buy 28 properties in Europe and Asia from Ascott for $969.6 million.

Ascott Residence will also sell its stake in a Beijing serviced residence property for $214 million to Ascott, it said in a statement to the Singapore exchange. The purchase will increase Ascott Residence’s asset size to $2.85 billion, it said.

Ascott, which owns about 48% of Ascott Residence, will make a profit of about $52.1 million from the divestments, according to the statement. Proceeds from the sale may be used to make acquisitions, and the company said it sees “attractive investment prospects” in Paris, London and Germany.

Source : The Edge – 20 Aug 2010

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