Ascendas Hospitality to Raise S$200 Million for Hotel Purchase

Ascendas Hospitality (ASHT) 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.

To contact the reporter on this story:

Pooja Thakur in Singapore at

pthakur@bloomberg.net

To contact the editor responsible for this story:

Andreea Papuc at

apapuc1@bloomberg.net

Ascendas Hospitality to Raise S$200 Million for Hotel Purchase