CapitaLand Ascott Trust (CLAS) has recently made a significant acquisition in Japan, adding two freehold limited-service hotels to its portfolio for a total of JPY21 billion ($178.5 million). The two hotels, which are ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, are strategically located in Tokyo and Kanazawa, respectively. The purchase price for this acquisition was at an 8.3% discount to its independent valuation.
On a FY2024 pro forma basis, the acquisition has a distribution per stapled security (DPS) accretion of 1.6%, which is a positive boost for investors. Additionally, the blended net operating income (NOI) yield of the acquisition is expected to be 4.3% in FY2024. To hedge against currency fluctuations, the acquisition was funded by JPY-denominated debt and proceeds from CLAS’ divestment of four properties in Japan.
The first hotel, ibis Styles Tokyo Ginza, is located in Tokyo’s bustling shopping and entertainment district. With 224 units, the …