Ascott REIT has launched a rights issue to raise S$442.7 million, the proceeds of which will be used to partly fund the acquisition of Citadines City Centre Frankfurt, its first in the city, and its second in Hamburg, Citadines Michel Hamburg, from The Ascott.

A further S$381.6 million will be used to acquire Ascott Orchard Singapore, which is expected to be completed by 3Q 2017.

The two German Citadines properties will continue to be managed by Ascott, while Ascott Orchard Singapore will be operated under a master lease to Ascott.

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