Ascott Residences Trust reveals $150m private placement
It will benefit its stapled security holders.
Hospitality Reit, Ascott Residences Trust (ART), announced its $150m private placement, which it believes will benefit stapled security holders.
In a statement, ART said it will use the placement for funding of aggregate purchase of $215.2m in respect of the proposed acquisition of interests in serviced residence properties in France, Vietnam and Australia, rental housing properties in Japan and a student accommodation property in South Carolina, US.
Aside from this, the private placement will also be used to partially fund future potential acquisitions such as rental housing properties, serviced residence properties, and student accommodation, and associated costs.
It will also be used to pay the estimated professional and other fees and expenses linked to the private placement.
These acquisitions, ART said, show an opportunity to acquire good quality properties and strengthen its presence in France, Japan, the US, Australia, and Vietnam.
As of 31 March 2022, ART owns 28 serviced residence properties, 15 hotels and 14 rental housing assets, and nine student accommodation properties.