Ascott REIT and Ascenda Hospitality Trust to Merge

News about Ascott Residence Trust

After CapitaLand ended up acquiring Ascenda-Singbridge, the group has decided to merge the two hospitality trust under it's umbrella, Ascott REIT and Ascenda Hospitality Trust.

The consideration for the proposed merger is about S$1.2 billion, comprising S$61.8 million in cash and 902.8 million new units of the new enlarged entity, Ascott Reit-BT.

Through a trust scheme of arrangement, Ascott Reit will acquire all A-HTrust units for S$1.0868 per unit, comprising S$0.0543 in cash and 0.7942 Ascott Reit-BT units issued at a price of S$1.30.

The deal is announced to be DPU accretive for unitholders of both trusts.

Ascott Residence Trust
Price1.320 SGD
NAV1.250 SGD
Yield (4 quarters)5.67%
Gearing33.0%