Ascendas Hospitality to Raise S$200 Million for Hotel PurchasePooja Thakur
Ascendas Hospitality Trust is planning to raise at least S$200 million ($158 million) in Singapore to help fund the purchase of the Park Hotel Clark Quay it agreed to buy earlier this month.
The business trust plans to sell 161.9 million new shares through a private placement to raise about S$143.3 million, it said in a statement to the Singapore stock exchange today. The Singapore-based trust will also raise another S$56.7 million from a preferential offering of two new stapled securities for every 25 units held in Ascendas Hospitality Trust, it said.
Ascendas Hospitality declined 2.6 percent to 92.5 Singapore cents in Singapore trading yesterday, bringing its year-to-date decline to 1.6 percent. The company requested a trading halt today before the announcement.
The trust agreed to buy the Park Hotel for S$300 million, adding to the trust’s portfolio of 10 hotels spread across Australia, China and Japan. Its parent Ascendas Pte manages Singapore’s biggest industrial real estate investment trust, and operates in 33 cities with S$14 billion of assets, according to its website.
DBS Group Holdings Ltd. and Standard Chartered Plc have been appointed the joint global coordinators for the equity fundraising, Ascendas said.