ART – BT

CapitaLand cuts Ascott trust stake to 37%

SINGAPORE – South-east Asia’s largest property developer CapitaLand said on Wednesday it would sell 100 million units in Ascott Residence Trust, reducing its interest to 37.3 per cent from 53.8 per cent. The property developer said in a statement that it would place out 100 million Ascott trust units at $1.90 each to JP Morgan (S.E.A.) Ltd, which would in turn get buyers for the units. CapitaLand said the sale would result in $30.3 million profit after tax and minority interests.

Ascott trust, a property trust spun off by serviced apartment firm Ascott, said on Monday that it will raise about $199 million for acquisitions by selling new units. The placement includes a non-renounceable preferential 1-for-10 rights offering of 49.94 million new units at an issue price of between $1.83 and $1.88 a unit. The trust will also offer up to 50.17 million new units to institutional investors and 8 million new shares to retail investors, in both cases priced at between $1.85 and $1.90 a unit. JP Morgan is managing the deal. — REUTERS