20 Mar
2006

Ascott Divests Liang Court Shopping Centre For S$175 Million

The Ascott Group’s (Ascott) subsidiary, Somerset Investments Pte Ltd has signed a sale and purchase agreement with ARMF II (Liang Court) Pte Ltd today to divest its non-core asset, Liang Court Shopping Centre for S$175 million. This divestment is part of Ascott’s strategy to focus on its core business in the serviced residence industry.

The sale price of S$175 million is inclusive of the property, plant and equipment as well as the assignment of existing tenants in Liang Court Shopping Centre to ARMF II (Liang Court) Pte Ltd.

Mr Liew Mun Leong, Ascott’s Deputy Chairman and President and CEO of its parent company, CapitaLand Group said: “The divestment of Liang Court Shopping Centre is in line with Ascott’s ‘asset light, asset right’ strategy to divest its non-core assets and reinvest the proceeds into higher yield assets and markets. The divestment of its non-core assets will enable Ascott to focus on growing its serviced residence business particularly in high growth markets including China, Japan, Thailand and Vietnam, as well as the expansion of its Citadines brand in Asia.”

Ascott’s Managing Director and CEO, Mr Cameron Ong said: “Liang Court Shopping Centre is Ascott’s last non-core asset in Singapore. Its divestment enables Ascott to further unlock shareholder value. We would recognise a net divestment gain of about S$36 million for 2006 from the sale of Liang Court Shopping Centre.”

The six-storey Liang Court Shopping Centre, located at 177 River Valley Road, has a gross floor area of about 46,000 square metres. It is part of the Liang Court Complex which also houses the 21-storey Somerset Liang Court serviced residence, and the 20-storey Novotel Clarke Quay Hotel.

Somerset Liang Court, the serviced residence portion which has a separate strata title, is not affected by the divestment. Somerset Liang Court remains fully-owned by Ascott Residence Trust, Ascott’s pan-Asian serviced residence REIT (real estate investment trust).
 



About The Ascott Group

The Ascott Group is a leading international serviced residence company with 15,500 serviced residence units in key cities of Europe, Asia Pacific, and the Middle East.

Ascott's global presence spans 41 cities in 17 countries. These include London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Pattaya, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai and Beijing in Asia; Sydney, Melbourne and Auckland in Australia / New Zealand as well as Dubai in the Middle East.

Headquartered in Singapore, The Ascott Group pioneered Asia Pacific's first branded luxury serviced residence in 1984. Today, it boasts a 21-year industry track record and serviced residence brands that enjoy recognition worldwide.

The Group operates three brands – The Ascott, Somerset and Citadines. Its achievements have been recognised internationally; it has clinched numerous prestigious awards including the 2006 ‘China’s Top 100 Serviced Apartments’ award, Korea Times’ ‘Best International Serviced Residence Brand’ award, the ‘Highly Commended Deluxe Accomodation’ award at the 2005 Tasmanian Tourism Awards, ‘Best Accommodation’ at the 2005 World Travel Awards, TTG Asia Media’s 2005 ‘Best Serviced Residence Operator’ award, and the Business Traveller Asia Pacific’s 2005 ‘Best Serviced Residence Brand’ and ‘Best Serviced Residence’ awards. For a full list of awards, please visit : https://www.the-ascott.com/aboutus/awards_and_accolades.html?year=2007

Listed on the mainboard of the Singapore Exchange, Ascott is the serviced residence arm of CapitaLand Limited, one of Asia’s largest listed property companies. Headquartered in Singapore, the multinational company's core businesses in property, hospitality and real estate financial services are focused in gateway cities in Asia Pacific, Europe and the Middle East. Its property and hospitality portfolio spans more than 70 cities in 18 countries.

For reservations on Ascott properties, call Central Reservations on (65) 6272-7272 or visit www.the-ascott.com