Ascott To Acquire Hai Phong Serviced Residence Currently Under Its Management
Somerset Central TD Hai Phong City to be acquired for US$9.45 million
Singapore, 2 August 2011 – CapitaLand's wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has entered into a conditional joint venture agreement with Thuy Duong Investment Joint Stock Company whereby Ascott will acquire a 90% stake in Somerset Central TD Hai Phong City, Vietnam for US$9.45 million (S$11.4 million). Ascott was awarded the management contract for the 132-unit Somerset Central TD Hai Phong City in 2009 by Thuy Duong Investment Joint Stock Company, an established real estate company with developments across Vietnam's major cities. The acquisition of Somerset Central TD Hai Phong City will allow Ascott to take control of the development and enhance the value of the serviced residence.
Somerset Central TD Hai Phong City will be the first international brand of serviced residence in Hai Phong when it opens in the second half of 2012. Besides Somerset Central TD Hai Phong City, Ascott will be opening Somerset Danang Bay and Somerset Saigon Ho Chi Minh City in Vietnam by 2014. As the largest international serviced residence owner-operator in Vietnam, Ascott currently operates over 860 apartment units across six properties (four properties in Hanoi and two in Ho Chi Minh City).
Mr Lim Ming Yan, Ascott's Chief Executive Officer, said: “Our strategy for Southeast Asia is to invest in key cities with strong potential for serviced residences. Vietnam is one of our key markets in Southeast Asia and we hold a long-term view of our investments in the country. Vietnam's pro-business regulatory environment and growing educated workforce will continue to attract multinational companies to set up operations. This will in turn generate demand for serviced residences. We are glad to be able to add Somerset Central TD Hai Phong City to our portfolio of quality properties.”
Mr Alfred Ong, Ascott's Managing Director for Southeast Asia and Australia, said: “The development of Hai Phong is one of the Vietnamese government's top priorities and its GDP is projected to grow by about 13% over the next five years. As foreign direct investments increase and the city expands its industrial and export processing zones, demand for quality accommodation will rise. By investing in Somerset Central TD Hai Phong City, we will be able to gain first mover advantage as there is no international serviced residence in Hai Phong. Besides opening three more properties in Hai Phong, Danang and Ho Chi Minh City in the coming years, we are constantly looking for investment opportunities and management contracts to strengthen Ascott's leadership position in Vietnam.”
Somerset Central TD Hai Phong City has a prime location in the city's new Central Business District and is just a five-minute drive from the airport and the old city centre. The property is also less than a 30-minute drive from the industrial parks and seaport which are attracting a large number of expatriates.
The serviced residence is part of the landmark TD Plaza, a modern and luxurious integrated development which also comprises a five-storey shopping complex, an office block and a condominium tower. Somerset Central TD Hai Phong City will offer units ranging from studios to three-bedroom apartments and facilities such as a gymnasium, swimming pool, business centre, residents' lounge and children's playroom. Residents at Somerset Central TD Hai Phong City will be able to enjoy a complete lifestyle experience at the adjoining shopping complex which houses Parksons Department Store, an eight-theatre Cineplex, bowling centre, supermarket, restaurants, café and food court.
About The Ascott Limited
The Ascott Limited is the world's largest international serviced residence owner-operator with over 22,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as about 6,000 units which are under development, making a total of more than 28,000 units.
The company operates three brands – Ascott, Citadines and Somerset. Its portfolio spans over 70 cities across 20 countries, 14 of which are new cities in Ascott's portfolio where its serviced residences are being developed.
Ascott, a wholly-owned subsidiary of CapitaLand Limited, is headquartered in Singapore. It pioneered Asia Pacific's first international-class serviced residence 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 27-year industry track record and serviced residence brands that enjoy recognition worldwide.
Recent awards include DestinAsian Readers' Choice Awards 2011 "Best Serviced Residence in Asia Pacific", TTG China Travel Awards 2011 "Best Serviced Residence Operator in China", Business Traveller UK Awards 2010 "Best Serviced Apartment Company", Business Traveller Asia-Pacific Awards 2010 "Best Serviced Residence Brand" and "Best Serviced Residence in Asia-Pacific‟" and TTG Travel Awards 2010 "Best Serviced Residence Operator".
About CapitaLand Group
CapitaLand is one of Asia's largest real estate companies. Headquartered and listed in Singapore, the multi-local company's core businesses in real estate, hospitality and real estate financial services are focused in growth cities in Asia Pacific and Europe.
The company's real estate and hospitality portfolio, which includes homes, offices, shopping malls, serviced residences and mixed developments, spans more than 110 cities in over 20 countries. CapitaLand also leverages on its significant asset base, real estate domainknowledge, financial skills and extensive market network to develop real estate financial products and services in Singapore and the region.
The listed entities of the CapitaLand Group include Australand, CapitaMalls Asia, CapitaMall Trust, CapitaCommercial Trust, Ascott Residence Trust, CapitaRetail China Trust, CapitaMalls Malaysia Trust and Quill Capita Trust.