Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascott Residence Trust — Merger or Acquisition (January 2021)
21 slides from Singapore Exchange's merger presentation, Jan 27, 2021
Slide 1: Acquisition of Student Accommodation Property in Atlanta and Expansion of Investment Strategy
Ascott Residence Trust Acquisition of Student Accommodation Property in Atlanta and Expansion of Investment Strategy 27 January 2021
Slide 2: Important Notice
Important Notice This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factor
Slide 3: Content
Content ▪ Expansion of Investment Strategy ▪ Overview of Acquisition ▪ Market Overview ▪ Rationale and Benefits ▪ Transaction Milestones 3
Slide 4: Expansion of Investment Strategy
Expansion of Investment Strategy Signature West Midtown
Slide 5: Expansion of Investment Strategy
Expansion of Investment Strategy Principal investment strategy of Ascott REIT will be expanded to include investments primarily in real estate and real estate related assets which are income producing and which are used, or predominantly used, as serviced residences, rental housing properties, stude
Slide 6: Overview of Acquisition
Overview of Acquisition Signature West Midtown
Slide 7: First Foray into Purpose-built Student Accommodation
First Foray into Purpose-built Student Accommodation Quality, freehold property in the heart of Atlanta Signature West Midtown Location 800 Marietta Street NW, Atlanta, Georgia, USA Purchase consideration1 US$95.0 million (S$126.3 million) Total acquisition cost US$97.9 million (S$130.2 million) (in
Slide 8: One of Atlanta's Newest Student Accommodation
One of Atlanta’s Newest Student Accommodation Prime location, stone’s throw from Georgia Tech Opened in 2019 Walking distance to Georgia Institute of Technology (Georgia Tech), an internationally recognised university Midtown Atlanta • 5 to 15-minute walk to Georgia Tech’s sports hub, lecture halls,
Slide 9: Market Overview
Market Overview Signature West Midtown
Slide 10: Student Accommodation in USA
Student Accommodation in USA World’s largest student accommodation market World’s largest student accommodation market with investment volumes of US$11 billion1 • Strong demand for purpose-built assets that are within walking distance of tier 1 institutions and those with premier sports status Enrol
Slide 11: Atlanta & Higher Education
Atlanta & Higher Education Home to 57 colleges and universities Atlanta is the largest metro in Southeast USA with one of the fastest-growing populations • 14% increase in population from 2010 to over 6 million in 2019 1 Healthy jobs growth and business-friendly environment • Beneficiary of migratio
Slide 12: Georgia Tech
Georgia Tech Leading advanced science and technology research university Reputable university • Ranked 35th in the USA and 2nd in Georgia1 • Participant of the Atlantic Coast Conference, one of the “Power 5” athletics conferences in the USA National Collegiate Athletics Associations Strong enrolment
Slide 13: Rationale and Benefits
Rationale and Benefits Signature West Midtown
Slide 14: Rationale and Benefits
Rationale and Benefits 1 Enhancing returns to Stapled Securityholders 2 Attractive opportunity to acquire quality student accommodation asset 3 Pivoting towards longer-stay accommodation for income stability 4 Enhancing diversification, adding a new platform for growth 14
Slide 15: Enhancing Returns to Stapled Securityholders
1 Enhancing Returns to Stapled Securityholders Replacing lost income from recent divestments and reinvesting at higher yields 4.4% increase in FY 2020 pro forma Neutral to distribution per Stapled Security (DPS) net asset value (NAV) (Singapore cents) (Singapore dollars) +4.4% 3.17 1.15 1.15 3.03 FY
Slide 16: Attractive Opportunity to Acquire Quality Student Accommodation Asset
2 Attractive Opportunity to Acquire Quality Student Accommodation Asset Strong property fundamentals • New, purpose-built, freehold student accommodation • Walking distance to Georgia Tech, a “Power 51”, Tier 1 university • Strong enrolment growth and pre-leasing momentum • Beneficiary of Georgia Te
Slide 17: Pivoting Towards Longer-stay Accommodation for Income Stability
3 Pivoting Towards Longer-stay Accommodation for Income Stability Plan to increase asset allocation in longer-stay properties • Seeking opportunities in longer-stay asset classes such as student accommodation and rental housing • Post-acquisition, rental housing and student accommodation properties
Slide 18: Enhancing Diversification, Adding a New Platform for Growth
4 Enhancing Diversification, Adding a New Platform for Growth Post-acquisition… Mitigating near-term headwinds of traditional hospitality asset classes 57 • Hospitality market conditions are expected to remain challenging in the Serviced near term Residences • Countercyclical asset class as students
Slide 19: Transaction Milestones
Transaction Milestones Signature West Midtown
Slide 20: Transaction Milestones
Transaction Milestones Date Milestone Signing of Sale and Purchase Agreement 27 January 2021 1.0% of the purchase consideration paid Expected completion, subject to conditions precedent End-1Q 2021 Remainder of the purchase consideration to be paid, subject to adjustments 20
Slide 21: Thank you
Thank you ASCOTT RESIDENCE TRUST A Member of CapitaLand
Ascott Residence Trust — Merger or Acquisition (January 2021) on 6ix