CapitaLand Ascott Trust (CLAS) will divest three hotels in Osaka, Japan – Hotel WBF Honmachi, Hotel WBF Kitasemba East and Hotel WBF Kitasemba West – to an unrelated third party for 10.7 billion yen (US$75.2 million).
The three properties will be divested at about 15 per cent above book value, and CLAS will recognise a net gain of 1.1 billion yen.
The divestment is expected to be completed in 1Q2024.
Serena Teo, CEO of CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management (the managers of CLAS), said: “The divestment of the three properties is part of our active portfolio reconstitution strategy. The properties are situated outside the prime districts in Osaka and the divestment enables CLAS to unlock the value of the properties, redeploying capital to assets and/or asset enhancement initiatives that can generate stronger yields, uplifting the overall value of our portfolio.
“Japan remains an attractive market for CLAS. Its strong tourism sector receives robust demand from both international and domestic sources. Population growth in the gateway cities also continues to rise with more locals moving into the urban cities. The overall positive demand-supply dynamics bode well for our portfolio of hospitality and longer-stay assets in Japan.”
CLAS continues to develop its portfolio in Japan, and is set to complete a turnkey acquisition of a 258-unit rental housing property in Fukuoka, Japan in 1Q2024.
