Ascott Residence Trust (Ascott Reit) has entered into a conditional sale and purchase agreement for the divestment of Somerset Gordon Heights Melbourne at an agreed price of around A$11.7 million (S$15.6 million).
Lim Jit Poh, Chairman of Ascott Residence Trust Management Ltd (ARTML), the manager of Ascott Reit, said the divestment of Somerset Gordon Heights is in line with the group’s strategy to actively manage Ascott Reit’s portfolio.
He noted that the divestment process is expected to be completed by Q2 this year.
Located within the Melbourne CBD, Somerset Gordon Heights is a freehold serviced residence comprising 43 apartment units with a net lettable area of 1,691 sq m. Ascott said the property contributed about S$0.7 million, or around 0.4 percent, of the trust’s total gross profit for the financial year 2011.
“The development is 13 years old and has reached a stage that offers limited growth, therefore the manager is of the view that it is an opportune time to divest the property at a price which is 6.4 percent above last valuation, and concentrate on re-deploying management’s resources for better efficiency,” noted Chong Kee Hiong, Chief Executive of ARTML.
He added that Ascott Reit continues to have a presence in Australia with Somerset St Georges Terrace Perth, which is located in the heart of Perth’s financial district.
“Despite the decision to divest Somerset Gordon Heights, Melbourne is still abounding with opportunities. Hence, we would still be keen if there are suitable properties for acquisition that are yield accretive.”
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