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Ascott REIT enters the United States

Ascott Residence Trust acquired the 411-key Element New York Times Square West for US$163.4 million. This is Ascott REIT’s first U.S. acquisition. 

The accretive acquisition at an EBITDA yield of 6.2% is expected to increase Ascott REIT’s distribution income in fiscal year 2014 by US$800,000. The property will continue to be operated by LG-39 Management LLC and its affiliates under the Element brand through a franchise from Starwood Hotels & Resorts Worldwide.

“Our first acquisition in the U.S. is a strategic step that will enable us to capitalize on the burgeoning hospitality market,” said Lim Jit Poh, chairman of Ascott Residence Trust Management Limited. “With future demand growth expected to continue to outpace supply, we are confident that this acquisition will further enhance Ascott REIT’s portfolio and unit holders’ returns.”

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