Hospitality trust's managers will not proceed with possible sale

SINGAPORE - Ascendas Hospitality Trust (A-HTrust) managers said on Tuesday (April 5) that they have "ceased all discussions in relation to selling all the trust's stapled securities.

The trust managers had said in four separate Singapore Exchange filings between Dec 23 last year and March 23 that they were undertaking a "strategic review of options" for A-HTRUST after receiving "an unsolicited expression of interest" for the acquisition.

Ascendas Hospitality Trust is a "stapled group" comprising Ascendas Hospitality Real Estate Investment Trust and Ascendas Hospitality Business Trust.

A stapled security is an arrangement under which different securities are quoted jointly.

The trust was established to invest in a diversified portfolio of income-producing real estate across Asia, Australia and New Zealand.

The trust managers had said that they were in the process of evaluating proposals from various parties.

Since it first announced unsolicited interest in its stapled securities on Dec 23 last year, the stock price had surged nearly 15 per cent to 81 Singapore cents on Feb 10. It closed flat at 76.5 Singapore cents on Tuesday.

The trust managers said after market close on Tuesday night that they have decided not to proceed with the possible transaction after evaluating the proposals.

"The managers will continue to work towards growing and enhancing the portfolio of A-HTRUST to deliver value and sustainable returns to stapled securityholders," said the trust managers in a statement.