REIT Financial News - 20 AUG 2010: Ascott REIT buying 28 serviced residences for S$970m

i) PROPOSED ACQUISITIONS AND DIVESTMENT
ii) APPROVAL IN-PRINCIPLE FOR THE LISTING OF NEW UNITS
See:

• Press Release
• Report
• Presentation Slides

Key Points

• Acquiring 28 serviced residences from its parent company, The Ascott, for S$969.6 million. 
• With the acquisition, its assets will double to about S$2.85 billion.
• it will become the sixth largest REIT in Singapore in terms of assets after its acquisition.
• Of the 28 properties to be acquired, 26 are in Europe, 1 in Singapore, and 1 in Vietnam (Hanoi).
• The Trust expects its annualised distribution per unit to rise some 4.8 per cent to 7.74 cents in its 2011 financial year. 
• It will also be selling a serviced apartment, Ascott Beijing, to its parent for S$214 million. 
• The divestment is 66 per cent above the property's valuation of S$181.8 million as at June 30 and will realise a gain of approximately S$106.2 million.
• To part finance the acquisitions, the Reit intends to raise approximately S$560.6 million through an equity fund raising which will comprise a non-renounceable preferential offering to existing unitholders and a private placement. 
• The proposed equity fund raising is expected to increase the Reit's free float by approximately 73% from S$385.3 million to S$665.3 million.