Ascott Enters Kyoto With Second Citadines In Japan
Ascott and Mitsubishi Estate jointly develop 126-unit Citadines Kyoto Gojo
Singapore, 25 October 2007 – The Ascott Group (Ascott), together with its long-standing partner, Mitsubishi Estate Co Ltd (MEC), will jointly acquire a prime site in Kyoto, Japan, to develop a 126-unit serviced residence. Ascott will take a 40% equity stake and invest about S$20.6 million for the land acquisition and development; MEC will hold the remaining 60% stake. Ascott will also manage the property, to be named Citadines Kyoto Gojo.
Kyoto is gaining prominence as a venue for international conferences. According to the Japan National Tourist Organisation, Kyoto hosted over 200 international conferences in 2006. The city, which recorded all-time high tourist arrivals of 48 million in the same year , will also host the G8 Foreign Ministers’ Meeting in May 2008.
Mr Lim Chin Beng, Ascott’s Chairman, said: “Japan, with its strong economic fundamentals, conducive investment environment and increasing popularity of serviced residences, is a key market for Ascott. Going forward, the Group will continue to seek new opportunities with MEC to strengthen our presence in the country.”
Mr Chong Kee Hiong, Deputy CEO (Finance & Investment), said: “Kyoto is important for Ascott’s expansion in Japan. The city, which is becoming a choice venue for international conferences in the country, is seeing growing demand for quality accommodation from international conference visitors. Given its solid track record, Ascott is in a good position to tap on the huge potential of this market by being the first to supply international-class serviced residences in the city.”
Citadines Kyoto Gojo enjoys a prime address in Gojo. It is a 10-minute walk from the city’s business district and just a short 15-minute walk from Kyoto’s tourist belt, where key attractions, F&B outlets, shopping malls and supermarkets are easily accessible. The property is also a stone’s throw away from the Gojo subway station, which is one stop away from the main Kyoto station for Shinkansen.
Citadines Kyoto Gojo, which is scheduled to open in the first half of 2010, will be Ascott’s second Citadines property in Japan. Ascott’s other Citadines property, Citadines Tokyo Shinjuku, is scheduled to open in the first half of 2009.
The development of Citadines Kyoto Gojo grows Ascott’s Japan portfolio to over 600 units in Tokyo and Kyoto, 286 units of which are under construction. The above investment is not expected to have any material impact on the net tangible assets and earnings per share of The Ascott Group Limited for the current financial year.
About The Ascott Group
The Ascott Group is the largest international serviced residence owner-operator outside the United States with close to 14,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as 5,500 units which are under development, making a total of about 19,500 units.
The Group operates three brands – Ascott, Somerset and Citadines. Its portfolio spans 53 cities in 23 countries, 11 of which are cities where Ascott's serviced residences are being newly developed.
The Ascott Group is headquartered in Singapore. It pioneered Asia Pacific's first branded luxury serviced residence in 1984. It also established the world’s first pan-Asian serviced residence real estate investment trust, Ascott Residence Trust in 2006. Today, the Group boasts a 23-year industry track record and serviced residence brands that enjoy recognition worldwide.
The Ascott Group's achievements have been recognised internationally. Recent awards include Business Traveller UK Awards 2007 'Best Serviced Residence Company', Business Traveller Asia Pacific Awards 2007 'Best Serviced Residence Brand' and 'Best Serviced Residence' and Forbes China 2008 ‘China’s Best Serviced Apartments. For a full list of awards, please visit https://www.theascottgroup.com/aboutus/awards.html
Listed on the mainboard of the Singapore Exchange, The Ascott Group is the serviced residence arm of CapitaLand Limited, one of the largest listed real estate companies in Asia. Headquartered in Singapore, the multinational company's core businesses in real estate, hospitality and real estate financial services are focused in gateway cities in Asia Pacific, Europe and the Middle East. The company's real estate and hospitality portfolio spans more than 90 cities in over 20 countries.
For more information on The Ascott Group’s property listings, visit https://www.theascottgroup.com/aboutus/group_directory.html