02 Sep 2014

Divestment of Interests in Serviced Residence Properties in Malaysia and PRC

Danny Lim, Chia Lee Fong and Caitlin Huang from the Corporate & Capital Markets Practice acted as Singapore legal counsel for Ascott Investment Holdings Ltd, Gaoxin Investments (BVI) Limited and Zhuankou Investments (BVI) Limited in the divestments of Somerset Ampang Kuala Lumpur ("KL Property"), Citadines Gaoxian Xi'an ("Xi'an Property") and Citadines Zhuankou Wuhan ("Wuhan Property") by way of a sale of interests in their holding companies, the particulars of which are as follows:

  1. divestment by Ascott Investment Holdings Ltd of its 100% interest in Somerset Ampang (Malaysia) Sdn. Bhd. to Somerset Ampang (S) Pte. Ltd. (a wholly-owned subsidiary of Ascott REIT) in connection with the KL Property for a consideration of approximately MYR169.4 million (approximately S$65.3 million);
  2. divestment by Gaoxin Investments (BVI) Limited of its 100% interest in Gaoxin Investments (Hong Kong) Limited to DBS Trustee Limited, in its capacity as trustee of Ascott REIT in connection with the Xi’an Property for a consideration of approximately US$27.5 million (approximately S$34.6 million); and
  3. divestment by Zhuankou Investments (BVI) Limited of its 100% interest in Zhuankou Investments (Hong Kong) Limited to DBS Trustee Limited, in its capacity as trustee of Ascott REIT in connection with the Wuhan Property for a consideration of approximately US$25.2 million (approximately S$31.7 million).

Ascott Investment Holdings Ltd is a wholly-owned subsidiary of CapitaLand Limited, while Gaoxin Investments (BVI) Limited and Zhuankou Investments (BVI) Limited are wholly-owned subsidiaries of Ascott Serviced Residence (China) Fund.