Ascott Residence Trust and Ascendas Hospitality Trust jointly announced a proposed combination, which will result in the combined entity becoming the largest hospitality trust in Asia Pacific, DPU accretive transaction to create an enlarged trust with wider investor base and greater financial flexibility.

In addition, the eighth largest hospitality trust globally, with an asset value of S$7.6 billion (the “Combination”). The combined entity will also become the seventh largest trust listed on the Singapore Exchange by asset value.

The total consideration for the Combination is S$1,235.4 million, comprising S$61.8 million in cash and 902.8 million in new Ascott Reit-BT Stapled Units.

Ascott Reit’s Ascott Orchard Singapore is located in Singapore’s world-renowned shopping belt Orchard Road. It is a few minutes’ walk from Orchard as well as Somerset Mass Rapid Transit stations with easy access to the Central Business District, world-class shopping malls and premium medical facilities.

The Combination will be effected by way of a trust scheme of arrangement, with Ascott Reit acquiring all the A-HTRUST Stapled Units for a consideration of S$1.0868 per A-HTRUST Stapled Unit, comprising S$0.0543 in cash and 0.7942 Ascott Reit-BT Stapled Units.

The consideration is based on a gross exchange ratio of 0.836x, derived from the audited net asset values per A-HTRUST Stapled Unit and Ascott Reit Unit.

The transaction brings together Ascott Reit’s global portfolio that comprises predominantly serviced residences and A-HTRUST’s 14 quality hotels in Asia Pacific, creating an enlarged portfolio of 88 properties with more than 16,000 units in 39 cities and 15 countries across Asia Pacific, Europe and the United States of America.

It will also further diversify Ascott Reit’s global portfolio with foray into new gateway cities – Brisbane and Seoul.