CapitaLand Ascott Trust (CLAS) has called for an extraordinary general meeting (EGM) to seek the approval of its shareholders for the proposed acquisitions of The Cavendish London, Temple Bar Hotel in Dublin, and Ascott Kuningan Jakarta.
The EGM is scheduled to take place at 3pm on Oct 24.
CLAS, on Oct 9, entered into purchase agreements to acquire The Cavendish London, Temple Bar Hotel, and Ascott Kuningan Jakarta. CLAS has agreed to acquire 100.0% of the shares of the companies that own these properties.
The share purchase consideration of the company that owns The Cavendish London is GBP116.3 million ($201.3 million) while the consideration for Temple Bar Hotel is EUR70.0 million ($103.7 million). The consideration for the shares in the company that owns Ascott Kuningan Jakarta is US$40.0 million ($52.8 million).
Upon completion of the proposed acquisitions, the property holding companies which hold the properties will enter into separate management agreements with Ascott, who will provide management services to these properties.
The Cavendish London has 230 units and a gross floor area (GFA) of 10,900 sqm (117,326.62 sq ft). As at June 30, the property has an agreed value of GBP215.0 million. Temple Bar Dublin has 136 units and has a GFA of around 7,800 sqm. It has an agreed value of EUR70.0 million as at June 30. Ascott Kuningan Jakarta has 185 units and a GFA of 18,900 sqm. As at June 30, the property has an agreed value of IDR620.0 million ($54.8 million).
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In the same filing dated Oct 9, CLAS is also proposing to renew three master lease agreements for its properties La Clef Louvre Paris, Citadines Presqu’île Lyon and Citadines Place d’Italie Paris, all of which are located in France.
The existing agreements are due for renewal on Dec 31 and each of them has been entered into with Citadines SA, an indirect wholly-owned subsidiary of The Ascott Limited, as master lessee.
The renewed agreements will begin from Jan 1, 2024, and last for a period of 12 years.
Units in CLAS closed at 89.5 cents on Oct 6.
