Singapore's Ascott REIT buys Sheraton Tribeca New York Hotel

Sheraton Tribeca New York Hotel

Singapore's Ascott Residence Trust has purchased a hotel in downtown New York City for an estimated $158 million. At least S$100 million of the acquisition will be funded by proceeds to be raised from a private placement that the REIT launched on Monday, with the rest to be funded by debt, the Business Times is reporting.

The 369-room Sheraton Tribeca New York Hotel is Ascott REIT's second New York acquisition in less than a year. In the fourth quarter of 2015, Ascott Reit bought its first property in New York, the Element New York Times Square West. The hotel was the REIT's biggest contributor to revenue growth. In a statement, chairman Lim Jit Poh said that the company would "actively seek accretive acquisitions" beyond the U.S. in Australia, Japan and Europe.

The company expects the acquisition to provide an EBITDA of 6.8 percent, and to increase its distribution income in FY15 by US$6.6 million, or a rise in distribution per unit from 7.99 Singapore cents to about 8.11 Singapore cents, the paper reports.

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