Ascott REIT acquires three Sydney serviced residences for $93m

These are its first acquisitions in New South Wales.

Ascott Residence Trust has entered into agreements to acquire three operating serviced residences in Greater Sydney, Australia at a price of approximately $93.0 million (AUD83.0 million). These are Ascott Reit’s maiden acquisitions in New South Wales.

Ascott Reit is acquiring the three operating serviced residences from Quest Serviced Apartments (Quest), the largest serviced apartment provider with 112 properties in Australia. 

Ascott Reit will receive fixed rent by taking over the leases for the three serviced residences - Quest Sydney Olympic Park, Quest Campbelltown and Quest Mascot - and they will continue to be operated under franchises using the Quest brand. 

The accretive acquisitions at an EBITDA yield of 7.7% are expected to increase Ascott Reit’s FY 2013 distribution per unit from 8.40 cents to 8.46 cents on a pro forma basis.