Ascott Residence Buying Student Accomodation Asset

News about Ascott Residence Trust

Ascott Residence Trust is announcing its first acquisition in the USA with the purchase of a student accommodation asset, the Signature West Midtown.

Asset

The Signature West Midtown is a purpose-built student accommodation in Atlanta, Georgia, completed in 2019. A freehold property, it has 525 beds across 183 units and is located close to Georgia Tech with facilities such as a swimming pool or a rooftop lounge. Occupancy stands at about 95% with an average length of stay of about a year.

Financing

The price of US$95 million (plus fees) will be paid by recycling divestment proceeds and debt.

Expectations

As the purchase is yield-accretive, distribution per unit is expected to be lifted by about 4.4% while having no impact on NAV.

Ascott Residence Trust
Price1.020 SGD
NAV1.190 SGD
Yield (4 quarters)3.95%
Gearing35.9%