Ascott

Ascott: OCBC maintains Buy with $1.37 TP. Note that Ascott has announced that it has entered into a strata sale for the divestment of 81 units in Somerset Grand Fortune Garden, which is located in Chaoyang District, Beijing. The sale consideration for the Somerset Grand Fortune Garden units, when fully sold, is estimated to be RMB628.0m (approximately S$128.1m), as derived from the independent valuation. The amount of excess over book value of the Somerset Grand Fortune Garden units is approximately $79.9m. It should be noted that the sale consideration for each Somerset Grand Fortune Garden unit will be negotiated on a willing-buyer and willing-seller basis. A third-party owner who owns a total of 100 units in Somerset Grand Fortune Garden had earlier commenced a separate strata sale of the 100 units, resulting in increasing difficulty for ART to continue operating the property.