SINGAPORE - Ascott Residence Trust has bought a hotel in the heart of Tokyo for 8 billion yen (S$96.2 million).
It bought the 206-unit asset in Shinjuku, which is now operating as Best Western Shinjuku Astina, from Japanese property firm Kabushiki Kaisha Oumi.
The hotel, which now has a 90 per cent occupancy rate, will be converted into a Citadines-branded serviced residence next year.
It is located near to an underground linkway leading to Shinjuku Station, a busy transport hub that connects central and western Tokyo, and is surrounded by many restaurants, entertainment outlets and malls.
The acquisition is expected to increase Ascott Reit's distribution per unit for this year to 8.45 cents from 8.4 cents.
Besides this latest acquisition, Ascott Reit also owns three serviced residences and 31 rental housing properties with 2,284 apartment units in Japan.