Ascot resident trust sells Cairnhill for $359 million, but will buy it back at over $400 million and still expects to make a killing in the residential market
Southeast Asia’s largest property developer has said that it will buy Somerset Grand Cairnhill, which is a prime residential area in Singapore from its subsidiary an Ascot Resident Trust and turn it into an integrated development area.
Ascott Residence Trust
This area is located just off Orchard Road and this redevelop property will be made up of a 20 story serviced residence with the hotel license and a high-end 30 story residential development and it will encompass 466,429 sq ft of living space.
The serviced resident portion will take up 40% of the total area at almost 190,000-ft.² will house 371 units and is expected to be ready for occupancy in the 3rd quarter of 2017, after which it will be sold back to Ascot resident trust for S$405 million.
Ascott Residence Capitaland
The trust itself is not allowed to undertake any redevelopment work itself, and this is due to restrictions put upon it by the Monetary Authority of Singapore. So by selling off Somerset grand Cairnhill temporarily, it expects to make back S$87.1 million after completion of the project.
There will also be 200 to 250 units of residential apartments and these will be marketed by the developer CapitalLand who plans on attracting high–net–worth young professionals and families as their main buyers.
Orchard Road Service Residence
Ascot Raffles Place and Ascot Guangzhou will be sold to Ascot Residence Trust for S$283 million and this money will be used by CapitaLand to purchase the Cairn hill property as well as other investments in the Asian-Pacific region along with Europe.