SINGAPORE (Oct 31): Ascott Residence Trust (Ascott REIT) has divested its entire stake in The Ascott (Vietnam) Investments for a total consideration of US$10 million ($13.7 million).
The Ascott (Vietnam) Investments owns a 70% stake in West Lake Development, a Vietnamese project company. The remaining 30% is held by Hanoi Housing Development and Investment Corporation.
West Lake Development in turn wholly owns Somerset West Lake Hanoi, a serviced residence which was valued at $13.3 million as at June 30.
In a bourse filing after market hours on Thursday, the manager says that the consideration, which was negotiated on a willing-buyer and willing-seller basis, was paid to Ascott REIT in cash.
The consideration is also subject to post-completion adjustments to take into account the consolidated net asset value (NAV) of The Ascott (Vietnam) Investments.
The manager adds that the transaction is not expected to have any material effect on the net tangible assets per share and earnings per share of Ascott REIT for the current financial year.
Units in Ascott REIT closed two cents lower, or 1.43% down, at $1.38 on Thursday prior to the announcement.
