Ascott Residence Trust (Ascott Reit) has acquired a 60 percent stake in Citadines Shinjuku Tokyo from Mitsubishi Estate Co Ltd and Citadines Shinjuku Ippan Shadan Hojin for S$45.7 million.
“The acquisition of Citadines Shinjuku is a rare opportunity to add a quality purpose-built serviced residence in Tokyo,” said Lim Jit Poh, Chairman of Ascott Residence Trust Management Limited (ARTML).
“We are acquiring Citadines Shinjuku at an opportune time, and believe its operating performance will improve in tandem with the improving business conditions in Japan.”
Citadines Shinjuku comprises 160 apartments with one basement in a 12-storey building. The freehold property has a total gross floor area (GFA) of 6,197 sq ft and is located within walking distance of the Shinjuku East area, one of Tokyo’s thriving urban centres.
It enjoys a prime location near the Toei Shinjuku and Marunouchi subway lines and is also conveniently located near shopping malls, supermarkets, restaurants and the Shinjuku Gyoen National Garden.
“Newly-opened for less than three years, the freehold serviced residence is located in the prime Shinjuku area in Tokyo. The area is popular with corporate and leisure travellers who like the vibrant Shinjuku East locale,” said Chong Kee Hiong, Chief Executive of ARTML.
Chong noted that the acquisition will be funded by borrowings. “Ascott Reit’s healthy balance sheet has again allowed us to seize acquisition opportunities. Following this transaction, Ascott Reit’s gearing will be at 42%, which is still within our optimal gearing level of 45%, with an interest cover ratio (ICR) of more than three times,” he said.
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