CapitaLand Ascott Trust to Sell Citadines Property for S$148M

CapitaLand Ascott Trust (Clas) plans to sell Citadines Mount Sophia Singapore for S$148 million in a deal expected to conclude in Q1 2024.

- Consideration is 19.4% above the property's book value at end-2023.

- Represents a divestment of close to S$1 million per key, a significant premium to book value.
- Expected net proceeds around S$138.6 million with a net gain of about S$14.6 million.
- Exit yield for Mount Sophia Citadines Singapore based on FY2023 EBITDA stands at 3.2%.
- Sale follows a series of divestments totaling S$408.1 million across 10 mature assets in the last eight months.
- Capital from these sales will be utilized to reduce debt, fund asset enhancement initiatives (AEIs), or reinvest in higher-yielding assets.
- The aim is to enhance financial flexibility, potentially lowering gearing by close to two percentage points.
- Clas aims to opportunistically expand its portfolio with more yield-accretive assets.
- Over the past three years, distribution income from new investments has replaced income from divested properties.