In its statement, CLAS also announced that it will enter into a 20-year master lease agreement with a wholly-owned subsidiary of The Ascott Limited for lyf Funan. Ascott is the hospitality arm of CLAS’s sponsor, CapitaLand Investment (CLI).
Analysts from Citi Research and OCBC Investment Research (OIR) have maintained their “buy” call on CapitaLand Ascott Trust (SGX:HMN
) (CLAS) after the REIT announced the proposed acquisition of the 329-room lyf Funan on Oct 1. CLAS will acquire the hotel from Ascott Serviced Residence Global Fund (ASRGF) at an agreed property value of $263 million.
OIR’s Ada Lim notes that SG&R Singapore (HVS) and Colliers have separately valued the property at $265 million and $271 million, respectively, and although the agreed property value of $263 million appears favourable compared to other deals in the market, the price accounts for the property’s leasehold tenure which ends on Dec 11, 2078.
