CapitaLand Ascott Trust (CLAS) is set to offload three hotels in Osaka, Japan, to an unrelated third party for a combined value of Y10.7bn ($75.2m).
The properties, namely Hotel WBF Kitasemba East, Hotel WBF Honmachi, and Hotel WBF Kitasemba West, will be sold nearly 15% above book value.
Net proceeds from the sale are estimated to be around Y3.9bn. CLAS looks to book a net gain of Y1.1bn from the deal.
This transaction is due to close in the first quarter of 2024.
Hotel WBF Kitasemba East is a 13-floor select service hotel while Hotel WBF Honmachi is a 15-floor hotel, both within walking distance of Honmachi subway station.
Hotel WBF Kitasemba West is also a 13-floor select service property.
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Following the sale of the three properties, CLAS will have 30 properties, including rental housing, serviced residences, hotels, and student accommodation properties in Japan.
The 30 properties are located across cities such as Fukuoka, Tokyo, Sapporo, Hiroshima, and Osaka.
CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management CEO Serena Teo said: “The divestment of the three properties is part of our active portfolio reconstitution strategy.
“The properties are situated outside the prime districts in Osaka and the divestment enables CLAS to unlock the value of the properties, redeploying capital to assets and/or asset enhancement initiatives that can generate stronger yields, uplifting the overall value of our portfolio.”
Last month, CLAS announced that it would sell two hotels in Sydney, Australia, to an independent third party for a total of A$109m ($70.1m).
The properties are Courtyard by Marriott Sydney-North Ryde and Novotel Sydney Paramatta.
The company made 11 acquisitions in Japan last year, including longer-stay assets such as rental housing and student accommodation properties.