SINGAPORE (March 7): Ascott Residence Trust has launched a fully underwritten renounceable rights issue to raise $442.7 million.

The proceeds will be used to partly fund Ascott REIT’s acquisition of its first property in Frankfurt and its second in Hamburg from The Ascott for €65.4 million ($97.2 million).

The acquisitions of the two operating serviced residences, Citadines City Centre Frankfurt and Citadines Michel Hamburg, are accretive at an EBITDA yield of 5.4%.

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