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CapitaLand Ascott Trust (#CLAS) has acquired the remaining 10% stake in Standard at Columbia, a freehold student accommodation property in South Carolina, United States of America. The earnings before interest, taxes, depreciation and amortisation (EBITDA) yield on total development cost is expected to be approximately 7%, higher than the 6.2% EBITDA yield that was projected in 2021 on the basis that the property has achieved stable performance. The acquisition is funded by proceeds from CLAS’ earlier divestments. Serena Teo, Chief Executive Officer of CLAS, said: “The acquisition of Standard at Columbia is in line with CLAS’ strategy to marry stability and growth to generate long-term returns to Stapled Securityholders. Recycling capital from our divestment proceeds into this longer-stay asset with strong operating performance will further boost our returns. With an average length of stay of about one year, student accommodation properties enhance CLAS’ stable income stream and strengthen our portfolio’s resilience against macroeconomic uncertainties. It diversifies our portfolio which also comprises hospitality assets such as serviced residences or hotels that allow us to capture travel demand for growth income.” The 678-bed Standard at Columbia serves the nearby University of South Carolina (USC), which is the largest university in the state. It is one of the best performing student accommodation properties serving the USC, commanding one of the highest rents per bed. For the upcoming academic year (AY) 2024-2025, the pre-leasing occupancy rate has reached 99% as at end May, with rental growth of about 4% compared to AY 2023-2024. For more, visit: https://bit.ly/CLASSaC10 #Acquisition #REIT #PBSA #Lodging

CapitaLand Ascott Trust fully acquires student accommodation property Standard at Columbia to boost income resilience

CapitaLand Ascott Trust fully acquires student accommodation property Standard at Columbia to boost income resilience

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