Ascott Residence Trust Divests Somerset Xu Hui Shanghai at RMB 1,050 Million
Ascott Residence Trust Divests Somerset Xu Hui Shanghai At RMB 1,050 Million
Divestment is at 171% above book value; estimated net gain is RMB 536.6 million
Ascott Residence Trust (ART) today announced the divestment of Somerset Xu Hui Shanghai in China at RMB 1,050 Million (S$215.6 million*) to an unrelated third-party.
The divestment is at 171% above the property’s book value.
Net proceeds of the divestment is approximately RMB 944.6 million (approximately S$193.9 million*).
ART will receive an estimated net gain of about RMB 536.6 million (S$110.2 million*) upon completion of the divestment which is expected to be in 2Q 2021.
The divestment is part of ART's on-going portfolio reconstitution strategy to unlock strong underlying value of the property and redeploy proceeds to higher-yielding assets to enhance the returns of ART’s portfolio.
Completed in 1999, Somerset Xu Hui Shanghai is a 168-unit serviced residence conveniently located in a prime residential district of Shanghai. It is within a 15-minute walk from the business area of Huai Hai Zhong Road and the Shan Xi Nan Road metro station.
In China, ART has five other properties which include Somerset Grand Central Dalian, Somerset Heping Shenyang and Somerset Olympic Tower Tianjin.