Ascott Enters Japanese Serviced Residence Market Through Joint Venture With Leading Developer
The Ascott Group has signed an agreement to form a joint venture with one of Japan’s largest developers, Mitsubishi Estate Co, Ltd to manage serviced residences in Japan.
The joint venture company, Ascott International Management Japan, will have an initial paid-up share capital of ¥25,000,000 (S$347,000), with Ascott holding a 49 per cent stake and Mitsubishi Estate, 51 per cent.
The company is expected to manage two serviced residences in Tokyo. These are an operational 64-unit residence in the Roppongi area, and a 79-unit residence in Higashi-Azabu which will open in the first quarter next year. In addition, it will assist in managing three existing apartment buildings with a total of 155 units.
The serviced residence arm of CapitaLand Limited, The Ascott Group is Asia Pacific’s largest serviced residence chain with over 7,600 units in 19 cities across Asia, Australasia and the United Kingdom. The joint venture extends the group’s leading Asia Pacific presence to Tokyo, its twentieth city.
The group's deputy chairman and CapitaLand's president and CEO, Mr Liew Mun Leong, said: "Ascott's joint venture expands CapitaLand's presence in Japan which includes commercial and residential developments.
"We are honoured to work with Mitsubishi Estate again in this venture. Our continued collaboration has been extended to leverage Ascott's expertise in managing serviced residences to make inroads into Japan’s emerging serviced residence market."
The Ascott Group's chief executive officer, Mr Kee Teck Koon, said: "The joint venture gives us a strategic foothold in the Japanese serviced residence market, where there is a limited supply of four and five-star serviced residences.
"We see increased demand for serviced residences and other types of expatriate housing in Tokyo, as the country adopts policies that open its economy and attract foreign investors."
The serviced residences managed by the joint venture company are expected to be marketed under the group’s serviced residence brands, through its international marketing network. Ascott will provide the JV company exclusive licence for the use of its trademarks and systems for the management of serviced residences in Japan.
About Mitsubishi Estate Co, Ltd
Mitsubishi Estate is one of Japan's largest real estate developers with US$20.5 billion assets, mainly in Tokyo. The group's businesses include property leasing and management, residential development and sales, architectural design, real estate brokerage, hotel and leisure operations. Mitsubishi Estate has overseas operations in the US and UK.
About The Ascott Group
The Ascott Group is Asia Pacific's largest serviced residence company. It manages a portfolio of 7,600 serviced residence units in 19 cities in 10 countries across Asia, Australasia and the United Kingdom.
In its drive for international leadership in the serviced residence industry, the group today commands pole positions in many gateway cities such as Singapore, London, Beijing, Shanghai, Jakarta, Hanoi, Ho Chi Minh City, Sydney and Melbourne.
The group pioneered the Asia Pacific's first branded luxury serviced residence in 1984. Today, it boasts an 18- year industry track record and serviced residence brands that are market leaders in the Asia Pacific.
The group’s luxury The Ascott brand projects an elegant lifestyle appealing to top executives. The Somerset brand offers stylish, contemporary living for senior to upper management executives.