Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

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<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/ascott-residence-trust" target="_blank" data-smartkarma-citation="entities:6560" rel="noopener">Ascott Residence Trust (ART SP)</a> and The Ascott Limited to jointly develop student accommodation property in the US</h3><ul><li>The Ascott Limited and its hospitality trust, ART, will jointly invest and develop a freehold student accommodation asset located in South Carolina, USA for an expected total amount of US$109.9m (S$146.2m). The 678-bed student accommodation will serve over 35,000 undergraduate and graduate students from the nearby University of South Carolina (USC). Construction of the student accommodation asset is scheduled to start in 3Q21 and complete in 2Q23. At the initial stage, Ascott and ART will jointly invest in the asset to own 45% stake each. A third-party partner, which is a joint venture between one of the largest student housing developers in the USA and a large national real estate developer and contractor based in the USA, will own the remaining 10% stake for alignment of interest</li><li>When the property’s performance stabilises, Ascott and ART will acquire the remaining share from the third-party partner. Ascott has separately formed a partnership with the student housing developer to invest and develop more student accommodation properties in the USA. These properties could become a potential pipeline for ART from its sponsor. The accretive investment in this maiden asset in South Carolina, is expected to increase ART’s pro forma FY20 DPS by about 2.1%. Upon stabilisation, the EBITDA yield is expected to be approximately 6.2%. Gearing will rise to 37.1% post-completion of the development. <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/213/297/original/image003+%282%29.png?1623806610" class="editor-image img-responsive" data-smartkarma-image-id="213297"></figure></section></li></ul>

SingaporeAscott Residence Trust (ART SP) and The Ascott Limited to jointly develop student accommodation property in the USThe Ascott Limited and its hospitality trust, ART, will jointly invest and develop a freehold student accommodation asset located in South Carolina, USA for an expected total amount of US$109.9m (S$146.2m). The 678-bed student accommodation will serve over 35,000 undergraduate and graduate students from the nearby University of South Carolina (USC). Construction of the student accommodation asset is scheduled to start in 3Q21 and complete in 2Q23. At the initial stage, Ascott and ART will jointly invest in the asset to own 45% stake each. A third-party partner, which is a joint venture between one of the largest student housing developers in the USA and a large national real estate developer and contractor based in the USA, will own the remaining 10% stake for alignment of interestWhen the property’s performance stabilises, Ascott and ART will acquire the remaining share from the third-party partner. Ascott has separately formed a partnership with the student housing developer to invest and develop more student accommodation properties in the USA. These properties could become a potential pipeline for ART from its sponsor. The accretive investment in this maiden asset in South Carolina, is expected to increase ART’s pro forma FY20 DPS by about 2.1%. Upon stabilisation, the EBITDA yield is expected to be approximately 6.2%. Gearing will rise to 37.1% post-completion of the development. 

ASEAN Builder's Scoop (16Jun21) - ART to Jointly Develop US Student Accommodation

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/ascott-residence-trust" target="_blank" data-smartkarma-citation="entities:6560" rel="noopener">Ascott Residence Trust (ART SP)</a> acquires three Japan rental housings for JPY6.78bn (S$85.2m); DPU accretive by +2.6%</h3><ul><li>ART has entered into agreements to acquire three freehold rental housing properties in central Sapporo for a total of JPY6.78bn (S$85.2m). The three rental housing properties – City Court Kita 1 jo, Big Palace Minami 5 jo, and Alpha Square Kita 15 jo came from unrelated third parties. The average EBITDA yield of the three acquisitions is ~4%. On a FY2020 pro forma basis, this transaction is expected to be DPS accretive by +2.6% with expected completion by end Jun21. This transaction will be funded by debt and part of the net proceeds from recent divestments of Somerset Xu Hui Shanghai. The exit yield was ~2% and ART has received net proceeds of RMB953.9m (~S$196.8m) and realized a net divestment gain of RMB582.6m (~S$120.2m)</li><li>The three rental housing properties with a total of 411 units will increase ART’s portfolio in Japan to over 4,500 units in 22 serviced residences, hotels and rental housing properties in nine cities. ART will have a total of 14 rental housing properties in Japan including four in Sapporo. The three rental housing properties will be managed by a local property manager, Kabushiki Kaisha Big Service, which is also the current property manager for ART’s rental housing property in Sapporo, Big Palace Kita 14 jo.</li></ul>

SingaporeAscott Residence Trust (ART SP) acquires three Japan rental housings for JPY6.78bn (S$85.2m); DPU accretive by +2.6%ART has entered into agreements to acquire three freehold rental housing properties in central Sapporo for a total of JPY6.78bn (S$85.2m). The three rental housing properties – City Court Kita 1 jo, Big Palace Minami 5 jo, and Alpha Square Kita 15 jo came from unrelated third parties. The average EBITDA yield of the three acquisitions is ~4%. On a FY2020 pro forma basis, this transaction is expected to be DPS accretive by +2.6% with expected completion by end Jun21. This transaction will be funded by debt and part of the net proceeds from recent divestments of Somerset Xu Hui Shanghai. The exit yield was ~2% and ART has received net proceeds of RMB953.9m (~S$196.8m) and realized a net divestment gain of RMB582.6m (~S$120.2m)The three rental housing properties with a total of 411 units will increase ART’s portfolio in Japan to over 4,500 units in 22 serviced residences, hotels and rental housing properties in nine cities. ART will have a total of 14 rental housing properties in Japan including four in Sapporo. The three rental housing properties will be managed by a local property manager, Kabushiki Kaisha Big Service, which is also the current property manager for ART’s rental housing property in Sapporo, Big Palace Kita 14 jo.

ASEAN Builder's Scoop (1June21) - ART Acquires 3 JP Rental Housings

Singapore

Ascendas Hospitality Trust is a stapled trust. The Trust comprises Ascendas Hospitality Real Estate Investment Trust and Ascendas Hospitality Business Trust established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of income-producing real estate used predominantly for hospitality purposes located across Asia, Australia and NZ.

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Ascendas Hospitality Trust (ASCHT SP)

ASEAN Builder's Scoop (16Jun21) - ART to Jointly Develop US Student Accommodation

ART to jointly develop US student accommodation; May21 new home sales down 30% MoM, take-up remains elevated; MEG board approves REIT listing;...

SCCM Asia Research

ASEAN Builder's Scoop (1June21) - ART Acquires 3 JP Rental Housings

ART acquires 3 JP rental housings; MAGIC inaugural 3.5% perps; PropertyGuru expands further in MY, TH; MSGB on-track to meet FY21 sales target

SCCM Asia Research

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