SINGAPORE (Thomson Financial) - Singapore-based serviced apartment operator Ascott Residence Trust (ART) said Monday it has agreed to buy 18 rental housing properties in Tokyo from a Japanese private equity company for 158.6 million Singapore dollars.
The properties are expected to generate an annualized yield of 4.1 percent in 2008, it said.
ART said it will borrow funds to finance the acquisition, bringing its gearing to 36.8 percent.
Upon legal completion, the properties will be managed by Ascott International Management Japan Co Ltd, a joint venture company that is 60 percent owned by ART parent, The Ascott Group, and Mitsubishi Estate Co Ltd.
(1 US dollar = 1.44 Singapore dollars)
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