Ascendas Hospitality Trust, through Ascendas Hospitality Real Estate Investment Trust, is buying three hotels in Osaka, Japan, from ES-Con Japan Ltd. for roughly ¥10.29 billion.
The consideration reflects a 2.9% discount to the ¥10.60 billion valuation of Hotel WBF Kitasemba West, Hotel WBF Kitasemba East and Hotel WBF Honmachi, according to the hotel-focused Singaporean trust.
Settlement for the Hotel WBF Kitasemba West and Hotel WBF Kitasemba East assets, both of which offer 168 hotel rooms across 13 floors, is expected in September, while the acquisition of the 182-room, 15-floor Hotel WBF Honmachi is slated for a January 2019 completion. Construction of the freehold hotels was completed between March and April.
The total cost of the agreed transaction is estimated at ¥11.24 billion, which includes the purchase consideration and applicable fees payable to the buyer's manager.
Ascendas Hospitality will fully finance the hotel purchases using debt.
As of June 15, US$1 was equivalent to ¥110.52.