We refer to the letter by Mr Tan Chor Yong (Probe big difference in valuation and buyout amount; Jan 21).

We wish to clarify that the valuation of Ascott Raffles Place Singapore as at Dec 31 last year was conducted as part of Ascott Residence Trust's (Ascott Reit) annual valuation exercise for the entire portfolio of Ascott Reit.

It was commissioned by DBS Trustee, as trustee for Ascott Reit.

The valuation of Ascott Raffles Place Singapore was conducted by Colliers International, an independent valuer, using the discounted cashflow method, which is consistently applied by Ascott Reit and generally in line with market practice.

Ascott Reit's assets are held primarily to generate stable long-term rental income, which forms its principal source of recurring cashflow.

Concerning the sale, an independent property consultant, Cushman & Wakefield, was engaged to conduct a marketing exercise for the divestment of Ascott Raffles Place Singapore.

The sale and purchase agreement for the divestment was signed on Jan 9 this year, and the sale price of $353.3 million reflects the highest offer received during the exercise.

As disclosed in the announcement on Jan 9, the sale was to an unrelated third party.

We wish to clarify that all divestments are carefully considered by Ascott Residence Trust Management, the manager of Ascott Reit, and the divestment of Ascott Raffles Place Singapore was approved by the board of directors in accordance with the applicable legal and regulatory requirements.

Beh Siew Kim (Ms)

Chief Executive Officer

Ascott Residence Trust Management Limited