Ascott Acquires Prime Serviced Residence In Hong Kong For HK$462.3 Million
Singapore, 1 August 2013 – CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has acquired an operating serviced residence in Hong Kong for HK$462.3 million (approximately S$75.5 million). The property will be leased back to the seller or its nominated entity for two years. At the end of the lease in 2015, the property will be reconfigured and rebranded by Ascott.
The serviced residence has a prime location at No.138 Connaught Road West in Hong Kong Island which overlooks the Victoria Harbour. It is a five-minute walk to the new Sai Ying Pun Mass Transit Railway station that will be operational in 2015, and is surrounded by Hong Kong’s authentic cultural, dining, shopping and leisure attractions, including Sun Yat Sen Memorial Park and Macau Ferry Terminal. With the International Finance Centre, trendy Soho and Central areas just two metro train stops away, the serviced residence is perfectly suited for both business and leisure.
Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said: “Hong Kong is one of the world’s strongest hospitality markets where demand for international-class serviced residences for both business and leisure travellers continues to grow. We have acquired a serviced residence with a central location in Hong Kong Island. Through our award-winning hospitality capabilities, we will subsequently transform the property into a quality serviced residence under one of our three brands. The acquisition will further strengthen Ascott’s leadership position as the largest international serviced residence owner-operator in China with more than 8,500 apartment units in 48 properties across 18 cities.”
Mr Kevin Goh, Ascott’s Managing Director for North Asia, said: “Ascott entered Hong Kong in 2006 with Citadines Ashley Hongkong in Tsim Sha Tsui, which has been achieving strong occupancy of above 90%. In 2014, we will open Somerset Victoria Park Hongkong near Causeway Bay, one of Hong Kong’s busiest commercial, retail and entertainment districts. This latest acquisition will increase Ascott’s portfolio in Hong Kong to three properties and we will continue to seek opportunities to expand our presence in Hong Kong. With the opening of the new metro station near the acquired serviced residence and asset enhancement plans which will be carried out at the end of the lease, we are confident that the value of the property will be enhanced.”
About The Ascott Limited
The Ascott Limited is a Singapore company that has grown to be the world's largest international serviced residence owner-operator. It has more than 22,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as over 9,000 units which are under development, making a total of more than 32,000 units in over 200 properties.
The company operates three brands – Ascott, Citadines and Somerset. Its portfolio spans over 70 cities across more than 20 countries, 18 of which are new cities in Ascott’s portfolio where its serviced residences are being developed.
Ascott, a wholly-owned subsidiary of CapitaLand Limited, pioneered Asia Pacific’s first international-class serviced residence with the opening of The Ascott Singapore in 1984. In 2006, it established the world’s first Pan-Asian serviced residence real estate investment trust, Ascott Residence Trust. Today, the company boasts a 29-year industry track record and award-winning serviced residence brands that enjoy recognition worldwide.
Ascott’s achievements have been recognised internationally. Recent awards include DestinAsian Readers’ Choice Awards 2013 for ‘Best Serviced Apartment/Residence Operator’, TTG China Travel Awards 2013 for ‘Best Serviced Residence Operator in China’, TTG Travel Awards 2012 for ‘Best Serviced Residence Operator’, Business Traveller Asia-Pacific Awards 2012 for ‘Best Serviced Residence Brand’ and ‘Best Serviced Residence in Asia-Pacific’, and Business Traveller UK Awards 2012 for ‘Best Serviced Apartment Company’.
About CapitaLand Limited
CapitaLand is one of Asia’s largest real estate companies. Headquartered and listed in Singapore, the company’s businesses in real estate and real estate fund management are focused on its core markets of Singapore and China.
The company’s diversified real estate portfolio primarily includes homes, offices, shopping malls, serviced residences and mixed developments. The company also has one of the largest real estate fund management businesses with assets located in Asia. CapitaLand leverages its significant asset base, real estate domain knowledge, product design and development capabilities, active capital management strategies and extensive market network to develop real estate products and services in its markets.
The listed entities of the CapitaLand Group include Australand, CapitaMalls Asia, Ascott Residence Trust, CapitaCommercial Trust, CapitaMall Trust, CapitaMalls Malaysia Trust, CapitaRetail China Trust and Quill Capita Trust.