SINGAPORE, 30 July 2020: Ascott Residence Trust has entered into two conditional agreements to divest Ascott Guangzhou in China and Citadines Didot Montparnasse Paris in France to two unrelated third parties.

The total sale value is SGD191.4 million, while ART is
expected to realise an estimated net gain of about SGD23.2 million upon the
completion of both transactions.

For Ascott Guangzhou in China, the divestment price of
RMB780 million (SGD155 million) is about 52% above the property’s book value
and about 81.0% higher than the acquisition price in 2012. ART is expected to
realise estimated net gains of about SGD19.4 million upon the completion of the
transaction in 1Q 2021.

For Citadines Didot Montparnasse Paris in France, the
divestment price of EUR23.6 million (SGD36.4 million) is about 69% above the
property’s book value and about 60.4% higher than the acquisition price in
2010. ART is expected to realise estimated net gains of about SGD3.8 million
upon completion of the transaction in 4Q 2020.

Managers of ART chief executive officer Beh Siew Kim said:
“Despite the Covid-19 situation, the opportunistic sale of Ascott Guangzhou and
Citadines Didot Montparnasse Paris at an attractive price allows ART to
rejuvenate its portfolio and unlock the strong underlying value of these
properties… The proceeds may also be used to pare down ART’s debt and reduce
its gearing, as distribution to stapled security holders, or for general
corporate purposes.”

Meanwhile, Ascott Residence Trust reported a distributable
income of SGD32.6 million during the first half of 2020 amidst the Covid-19
pandemic. This was 56% lower compared to the same period in 2019. 

ART’s revenue declined by 16% to SGD208.5 million, while
gross profit declined by 28% to SGD88.6 million. This was mainly attributed to
the decrease in contributions from the divestment of Ascott Raffles Place
Singapore and Somerset West Lake Hanoi and lower revenue from the existing
portfolio.