Singapore-listed hospitality trust Ascott Residence Trust (ART) has agreed to sell a serviced residence, Somerset Xu Hui Shanghai in China for RMB 1,050 million (S$215.6 million) to an unrelated third-party.
The divestment is at 171% above the property’s book value, said in a statement. Ascott Residence Trust expects to receive an estimated net gain of about RMB 536.6 million (S$110.2 million) from the sale which is expected to complete in 2Q 2021
Net proceeds of the divestment is approximately RMB 944.6 million (approximately S$193.9 million).
ART said net proceeds will be used to pare down the debts of ART or fund potential acquisitions and/or other general corporate purposes.
Completed in 1999, Somerset Xu Hui Shanghai is a 168-unit serviced residence conveniently located in a prime residential district of Shanghai. It is within a 15-minute walk from the business area of Huai Hai Zhong Road and the Shan Xi Nan Road metro station.
In China, Ascott Residence Trust has five other properties which include Somerset Grand Central Dalian, Somerset Heping Shenyang and Somerset Olympic Tower Tianjin.