SINGAPORE - CapitaLand Ascott Trust (Clas) has signed a memorandum of understanding (MOU) with its sponsor to acquire three lodging assets in Britain, Ireland and Indonesia at an agreed property value of $530.8 million.

It also intends to launch a fund-raising exercise to raise at least $300 million to partially fund the acquisition with the issue of new stapled securities.

The three assets are The Cavendish London hotel, the Temple Bar Hotel in Dublin and the Ascott Kuningan Jakarta serviced residence, it announced on Wednesday.

Clas expects the proposed acquisition to raise its total distribution by $13.5 million and its distribution per security by 1.8 per cent on a financial year 2022 pro forma basis.

It said that the earnings before interest, taxes, depreciation and amortisation yield of the acquisition is 6.2 per cent on a financial year 2022 pro forma basis.

Clas’ manager said the acquisition will boost the trust’s income flows and help it capitalise on strong lodging demand amid the travel recovery.

About $170.2 million of the proposed equity fund raising will go into partially funding the acquisitions.

The equity fund raising comprises a private placement of between 187.8 and 192.1 million new stapled securities within the proposed issue price range of $1.041 and $1.065, as well as a pro rata and non-renounceable preferential offering of up to 100.5 million new staple securities at between $1.025 and $1.044.

The trust’s manager requested a trading halt on Wednesday morning before the announcements.

Clas’ manager requested a trading halt on Wednesday morning before the acquisitions and equity fund raising were announced. Stapled securities of Clas ended Tuesday unchanged at $1.12. THE BUSINESS TIMES