Monday, August 6, 2012

CapitaLand

CapitaLand: its wholly owned serviced residence business unit, The Ascott, has signed an agreement to acquire the 230 unit hotel, The Cavendish London, for £158.8m. The transaction is expected to be completed in 4Q12. The hotel will be subsequently transformed into a luxurious serviced residence under the Ascott The Residence brand and will be named Ascott St James London. The acquisition will increase Ascott’s portfolio to 7 properties in central London. It will also enhance Ascott’s presence in Europe where it currently manages over 5000 units across 45 properties in 20 cities. Separately, CapitaLand also announces the establishment of a S$5b Euro Medium Term Note Programme. DBS, HSBC, JPM, MS, OCBC, StanChart and UOB are the joint arrangers and dealers. Net proceeds from the issue will be used for refinancing existing borrowings, financing the invmts and general corp purposes of CapitaLand. The stock closed up 2.3% on Friday at $3.12, its 4th consecutive rising day, following a good set of results last wk, on the back of an improvement in the China mass property mkt.

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