12 May

Ascott Divests The Ascott Mayfair For £65.8 Million (S$190.8 Million)

Singapore, 12 May 2006 - The Ascott Group's (Ascott) subsidiary, Greenpark Investments (Guernsey) Limited has signed a sale and purchase agreement on 12 May 2006 with an unrelated party to divest The Ascott Mayfair for £65.8 million (S$190.8 million). The Ascott Mayfair has 56 units and is located at 41, 43, 45, 47 & 49 Hill Street, London. The eight-storey property, with a basement, has a gross floor area of approximately 5,600 square metres. Ascott will continue to manage the property until completion date, sometime in the middle of the year, and the property will be handed over with vacant possession.

The sale price of S$190.8 million represents a premium of 144% over Ascott's current carrying value for The Ascott Mayfair. It translates into a significant EBITDA multiple of 49 times based on the property’s 2005 results. Ascott will realise a net divestment gain of S$78.3 million from the transaction, which will increase earnings per share by approximately 5.0 cents for the current financial year.

Mr Liew Mun Leong, Ascott's Deputy Chairman, and President and CEO of its parent company, CapitaLand Group said: “The divestment of The Ascott Mayfair is in line with Ascott's 'asset light, asset right' strategy and enables it to further unlock shareholder value. The proceeds of S$190.8 million from the divestment are significant and will help Ascott to expand its serviced residence business by investing into higher-yield assets and high growth markets. There is great potential for the Group to scale up its presence in key gateway cities in Europe. The Group intends to maintain its pole position as the largest international serviced residence owner/operator outside of the United States.”

Ascott's Managing Director and CEO, Mr Cameron Ong said: “The divestment proceeds from the sale of the 56-unit The Ascott Mayfair give us the opportunity to seek other properties in London and to expand into other gateway cities in Europe, particularly where there is a high volume of business travellers. This will give us greater economies of scale for our operations and marketing as well as offer more facilities for our guests. The Ascott Group has about 5,200 units in 45 properties in Europe, which is about a third of our global inventory of 16,000 units. Going forward, our European operations will remain an important contributor to the Group.”

With 45 properties in Europe, The Ascott Group is the largest international serviced residence owner/operator in Europe. Globally, Ascott has a portfolio of more than 16,000 units in 43 cities and 17 countries across the Asia Pacific, Europe and the Middle East. With this divestment there will be seven Ascott serviced residences located in Singapore, Kuala Lumpur, Jakarta, Bangkok, Beijing, Shanghai and New Zealand. It will also have a new Ascott serviced residence in Guangzhou, targeted to be opened in the second half of 2007.


About The Ascott Group

The Ascott Group is a leading international serviced residence company with more than 16,000 serviced residence units in key cities of Asia Pacific, Europe and the Middle East.

Ascott's global presence spans 43 cities in 17 countries. These include London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Pattaya, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai, Beijing, Xi’an and Hong Kong 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. The Group also established the world’s first pan-Asian serviced residence real estate investment trust, Ascott Residence Trust in 2006. Today, Ascott boasts a 22-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 ‘Innovative Capital Venture’ award at the 2006 China Hotel Investment Summit, 2006 ‘China’s Top 100 Serviced Apartments’ award, Korea Times’ ‘Best International Serviced Residence Brand’ award, the ‘Highly Commended Deluxe Accommodation’ 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



Celina Low, Vice President, Corporate Communications

Tel: (65) 6586 0475 

Hp: (65) 9682 5458 

Email: celina.low@the-ascott.com

Joan Tan, Manager, Corporate Communications

Tel: (65) 6586 0474 

Hp: (65) 9743 9503 

Email: joan.tan@the-ascott.com

Lilian Goh, Head, Investor Relations

Tel: (65) 6586 7231  

Hp: (65) 9795 5225  

Email: lilian.goh@the-ascott.com