CapitaLand Ascott Trust (CLAS) has acquired two freehold hotels in Japan for a total of Β₯21bn (β¬130m).
The two hotels are the ibis Styles Tokyo Ginza in Tokyo and the Chisun Budget Kanazawa Ekimae in Kanazawa, one of the top tourist destinations for domestic travellers.
The acquisition is priced at an 8.3% discount to an independent valuation by Cushman & Wakefield, with the assets generating a net operating income of 4.3% in 2024.
The acquisition was funded by JPY-denominated debt and proceeds from CLASβs divestment of four properties in Japan.
Serena Teo, CEO of CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management, said the acquisition is part of the firmβs portfolio reconstitution strategy to enhance the quality of the portfolio and deliver stable returns to securityholders.
βBy swiftly redeploying divestment proceeds into these higher-yielding assets, we have fully replaced the income from the four divested properties. CLAS continues to focus on delivering growth by ensuring our portfolio is well-positioned to capture lodging demand.β
βJapan is a key market for us,β Teo said, adding that post-acquisition 18% of CLASβs total assets will be located in the country.
She added: βThe revenue per available room for both Ginza and Kanazawa markets are also set to continue on an upward trajectory. The properties will be under management contracts, enabling CLAS to benefit from income upside.β
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