Ascott Residence Trust Clinches Fourth Student Accommodation Asset With Acquisition in USA For US$83.25 Million
Ms Beh Siew Kim, Chief Executive Officer of Ascott Residence Trust Management Limited and Ascott Business Trust Management Pte. Ltd. (the Managers of ART) said: “ART continues to ramp up our investments in the longer-stay segment to build stable income and the resilience of our portfolio. Seven07 is operational and will start contributing stable income immediately upon acquisition. The student accommodation asset is 100% occupied for AY 2021, with lease terms of about one year. For the AY 2022, Seven07 is about 50% pre-leased with strong rental growth of about 8% over AY 2021.”
“ART has successfully replaced distributable income of divested assets at higher yields. We have divested five properties for about S$501 million in FY 2020 and 2021 to date, at an average exit yield of around 2%. We have invested a total of about S$491 million in four student accommodation assets and three rental housing properties at an average EBITDA yield of about 5%. With Seven07, ART will increase our student accommodation and rental housing properties to about 12% of our total portfolio value, keeping us on target to grow longer-stay lodging assets to about 15-20% in the medium term. Following this acquisition, ART’s gearing will be at 35.8%. ART remains in a strong financial position to seek accretive investments in more longer-stay assets to diversify our portfolio, enhancing our resilience and creating more value for our Stapled Securityholders,” added Ms Beh.
Seven07 serves UIUC which is commonly known as a ‘Public Ivy’ school. The prestigious UIUC is a flagship university of Illinois and is consistently ranked as one of the top schools in USA for its accounting, computer science and undergraduate engineering programmes. UIUC’s student population has grown consistently at a compound annual growth rate of 2% from 2010 to 2020, twice the national average. Enrolment at UIUC also grew 2% in 2020 despite COVID-19. 87% of its student population are from USA. UIUC’s athletics programme also competes in the Big Ten Conference, one of the ‘Power 5’ athletics conferences in the National Collegiate Athletic Association. There is minimal new private student accommodation supply in the vicinity of Seven07 in the medium term.
Seven07 is located less than 200 metres from UIUC. From Seven07, students can walk to UIUC in five minutes and its main quad in about 10 minutes, offering students a well-designed and comfortable lodging option while maintaining an active student life on campus. The student accommodation asset is also near to several restaurants, cafés and other lifestyle options.
Opened in 2019, the 15-storey Seven07 has 548 beds across 218 units, comprising studio, one- to four-bedroom apartments. Each apartment has a fully equipped kitchen, smart TV, and washer and dryer. Most bedrooms within the apartments also have a private bathroom. The student accommodation asset has a range of facilities including an outdoor amenities deck with pool, state-of-the-art fitness centre, outdoor lounge with grill stations, indoor basketball court, spa with tanning services and sauna, study rooms, club room, bike storage, lounge café and covered parking lots and garages. Seven07 will be managed by an unrelated third-party operator. For more information on the student accommodation, please see the Annex.
Expanding ART’s student accommodation portfolio to build income resilience
With the addition of Seven07, ART’s four student accommodation assets in the USA will offer a total of 2,756 beds. In September 2021, ART acquired Wildwood Lubbock, a freehold 1,005-bed student accommodation asset for US$70.0 million (S$93.8 million). It has an expected EBITDA yield of about 5.1%. Wildwood Lubbock serves over 40,000 undergraduate and graduate students at Texas Tech University.
In June 2021, ART and its sponsor, The Ascott Limited, announced that they will jointly invest and develop a freehold student accommodation in South Carolina, USA. ART will invest US$55.2 million (S$73.4 million) in the 678-bed student accommodation which will serve over 35,000 students from the nearby University of South Carolina. Construction of the student accommodation started in 3Q 2021 and is expected to complete in 2Q 2023. Upon stabilisation, the EBITDA yield is expected to be approximately 6.2%.
In February 2021, ART acquired the freehold 525-bed Paloma West Midtown in Atlanta, Georgia for US$95 million (S$126.3 million) with an expected EBITDA yield of about 5%. Paloma West Midtown serves close to 40,000 students at Georgia Institute of Technology.
 The purchase consideration, arrived at on a willing-buyer and willing-seller basis, is based on the agreed value of the property and the independent valuation dated 29 October 2021 by Colliers International Valuation and Advisory Services LLC of US$86.4 million (equivalent to approximately S$116.6 million)
 Based on the exchange rate of US$1 to S$1.35
 Based on FY 2020 pro forma Distribution per Stapled Security. The pro forma is based on the audited financial statements of ART for the financial year ended 31 December 2020, assuming that (1) the acquisition was completed on 1 January 2020 and ART held and operated the property through to 31 December 2020 and (2) the acquisition will be funded approximately 45% by debt and 55% by equity
 Earnings before interest, tax, depreciation and amortisation
 ART will use about 43% of the S$150 million raised through its private placement to fund the acquisition of Seven07. About 38% was used to acquire Wildwood Lubbock in September 2021
 Excludes the divestment of partial gross floor area of Somerset Liang Court Singapore; the property is currently undergoing redevelopment. The five divested assets are Ascott Guangzhou, Somerset Azabu East Tokyo, Citadines Didot Montparnasse Paris, Citadines City Centre Grenoble and Somerset Xu Hui Shanghai
 For the student accommodation development in South Carolina, USA, the EBITDA yield is a target yield on a stabilised basis
 Based on the unaudited financial statements of ART as at 30 September 2021 and assuming that the acquisition was completed on 30 September 2021
 ‘Public Ivy’ refers to public schools with a reputation for academic excellence which provide a college experience similar to an Ivy League school
 2021 U.S. News & World Report
 Data based on AY 2020
 Comprises ART’s investment in the initial 45% stake, estimated cost of the additional 5% stake which ART will acquire at fair market valuation, and other deal related expenses
 Based on ART’s total investment
168 Robinson Road #30-01 Singapore
Ascott Residence Trust (ART) is the largest hospitality trust in Asia Pacific with an asset value of S$7.3 billion as at 30 June 2021. Having listed on the Singapore Exchange Securities Trading Limited (SGX-ST) since March 2006, ART’s objective is to invest primarily in income-producing real estate and real estate-related assets which are used or predominantly used as serviced residences, rental housing properties, student accommodation and other hospitality assets in any country in the world. ART is a constituent of the FTSE EPRA Nareit Global Real Estate Index Series (Global Developed Index).
ART's international portfolio comprises 89 properties with about 17,000 units in 39 cities across 15 countries in Asia Pacific, Europe and the USA as at 30 September 2021.
ART's properties are mostly operated under the Ascott The Residence, Somerset, Quest and Citadines brands. They are mainly located in key gateway cities such as Barcelona, Berlin, Brussels, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, London, Manila, Melbourne, Munich, New York, Paris, Perth, Seoul, Singapore, Sydney and Tokyo.
ART is a stapled group comprising Ascott Real Estate Investment Trust (Ascott Reit) and Ascott Business Trust (Ascott BT). ART is managed by Ascott Residence Trust Management Limited (as manager of Ascott Reit) and Ascott Business Trust Management Pte. Ltd. (as trustee-manager of Ascott BT), both of which are wholly owned subsidiaries of Singapore-listed CapitaLand Investment, a leading global real estate investment manager with a strong Asia foothold.
Visit www.ascottresidencetrust.com for more information.
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Ascott Residence Trust Clinches Fourth Student Accommodation Asset With Acquisition in USA For US$83.25 Million here
News-ID: 2448671 • Views: 407
More Releases from CapitaLand Limited
ASCOTT OPENS JAPAN’S FIRST LYF COLIVING PROPERTY IN THE VIBRANT FUKUOKA CITY
Singapore, 15 June 2021 – CapitaLand’s wholly owned lodging business unit, The Ascott Limited (Ascott), will be opening lyf Tenjin Fukuoka, Ascott’s first lyf-branded coliving property in Japan on 16 June 2021. lyf Tenjin Fukuoka is the first of six lyf properties that are slated to open this year in Singapore, Hangzhou, Shanghai and Xi’an, as Ascott gears up to meet the strong demand by customers and property owners for
CapitaLand continues portfolio reconstitution strategy by divesting three retail …
CapitaLand has divested three retail malls in Japan and an office building in Korea for a total of S$448.7 million as part of its ongoing portfolio reconstitution strategy. The buyers are unrelated third parties. The agreed value of the properties was arrived on a willing-buyer and willing-seller basis. In Japan, CapitaLand has divested La Park Mizue and Vivit Minami-Funabashi in Greater Tokyo, as well as CO-OP Kobe
ASCOTT ACHIEVES RECORD HIGH SIGNINGS OF OVER 5,600 UNITS IN CHINA TO DATE DESPIT …
CapitaLand’s wholly owned lodging business unit, The Ascott Limited (Ascott) has secured more than 2,100 new units across 12 properties in China in the last three months. With these new units, Ascott has added a record high of more than 5,600 units across 26 properties, which represent a 60% year-on-year growth in units in China. Globally, Ascott has sealed new contracts for more than 3,700 units across 22 properties; about
More Releases for ART
Art Collection Software Market to See Huge Growth by 2026 | Art Fundi, Art Binde …
The Latest Released Art Collection Software market study has evaluated the future growth potential of Art Collection Software market and provides information and useful stats on market structure and size. The report is intended to provide market intelligence and strategic insights to help decision makers take sound investment decisions and identify potential gaps and growth opportunities. Additionally, the report also identifies and analyses changing dynamics, emerging trends along with essential
Fusion Art to Host "Art for Animals" Juried Art Exhibition for Charity
Palm Springs, CA, USA -- Fusion Art (http://www.fusionartps.com), a Palm Springs contemporary fine art gallery, will host an "Art for Animals" Juried Art Exhibition Fundraiser for Charity to support local Coachella Valley animal welfare organizations. The gallery has partnered with the Palm Springs Animal Shelter, SNIP, The Living Desert, Animal Samaritans, and the Humane Society of the Desert to host a charity art exhibition during the month of December 2016. All
Fusion Art to Host "Art for Animals" Juried Art Exhibition for Charity
Palm Springs, CA, USA -- Fusion Art (http://www.fusionartps.com) is pleased to announce that it will host an "Art for Animals" juried art exhibition to support local Coachella Valley animal welfare organizations. The gallery has partnered with SNIP, the Palm Springs Animal Shelter, The Living Desert, Animal Samaritans, and the Humane Society of the Desert to host a charity art exhibition during the month of December 2016. All five organizations are 501(3)(c)
Art Bengaluru’s International Art Auction
Includes artworks of celebrated International artists & unique lots including sculptures, coffee tables, chairs and other collectors’ items. Bangalore, India, Friday - August 24th, 2012 -- ‘Art Bengaluru 2012’ ( http://www.artbengaluru.in ), South India’s premier festival for contemporary art and culture, presents an iconic event as a part of its celebrations – an International Art Auction ( http://www.artbengaluru.in/auction.html ). The Auction, being presented by well-known auctioneer - Angira Arya, will take
Online Art Gallery Announces Call for Art - Theme “CityScapes” Art Contest
Jupiter, Florida - March 27, 2011 -- Light Space & Time Online Art Gallery is pleased to announce its April’s 2011 art competition. The theme for April is “CityScapes”. 2D Artists can submit their best Cityscape themed art for the Gallery’s May 2011 exhibition now. The submission process for artists ends April 28, 2011. All winners will be selected, announced and placed on the Light Space & Time website on May
VernissageTV covers Art Cologne 2010 art fair and shows video art
Basel, April 8, 2010 – As media partner of Art Cologne, VernissageTV art tv will cover Art Cologne 2010. The fair for modern and contemporary art will take place in Cologne, Germany from 21st to 25th April 2010. VernissageTV will provide its viewers with atmospheric shots from the fair, recordings of art talks, and in-depth interviews with artists, curators and dealers. The program will be shown on the websites of Art