The total acquisition outlay is $265.1 million, which comprises a purchase consideration of $146.4 million, $113 million in loan repayments and fees. The sum will be funded mostly from the proceeds of CLAS’s divestment of Citadines Mount Sophia Singapore, which amounts to $142.8 million. CLAS will also draw down $119.7 million of debt to repay the existing loan facility. Finally, it will pay the acquisition fees with its stapled securities.
Serena Teo, CEO of the managers of CapitaLand Ascott Trust (SGX:HMN
) (CLAS), says she is “confident” that the REIT’s latest acquisition of lyf Funan puts it in a good position for “sustained growth”. Teo was speaking at a briefing held for analysts and the media on Oct 1 after CLAS announced that it was acquiring the 329-room property at an agreed property value of $263 million. The hotel is independently valued at $265 million by SG&R Singapore and $271 million by Colliers Singapore.
The REIT will acquire lyf Funan from Ascott Serviced Residence Global Fund (ASRGF), which is 50%-owned by CLAS’s sponsor, The Ascott, and the Qatar Investment Authority.
