ART – BT

Ascott Reit’s $1b note programme

ASCOTT Residence Trust (ART) now has access to $1 billion by way of a multi-currency medium term note (MTN). Ascott Residence Trust Management Ltd (ARTML), the Reit manager, has appointed DBS Bank to act as the arranger and the dealer of the MTN programme.

In a statement released yesterday, ARTML said the MTN may be used to refinance existing borrowings, to finance/ refinance investments, to on-lend to any trust, fund or entity in which ART has an interest, to finance/refinance any asset enhancement works and for the general working capital of the group.

In July, it was reported that ART plans to renovate Somerset Grand Cairnhill and Somerset Liang Court in phases. It was also reported then that ART had posted year-on-year declines in distributable income of 17 per cent for the second quarter and 20 per cent for H1. On a quarter-on-quarter basis, the Q2 2009 figure was up 2 per cent from the preceding quarter.

Most Reits have been adversely affected by the economic downturn. Since June, five other Reits have conducted rights issues or private placements for funds to raise more than $1.23 billion.