Ascott Sells Stake In Somerset Chancellor Court To Ascott Residence Trust For US$18.1 Million (S$27.9 Million)
Singapore, 24 January 2007 – The Ascott Group (Ascott) has signed a conditional sale and purchase agreement with Ascott Residence Trust (ART) to divest its effective 40.2% equity stake in Saigon Office and Serviced Apartment Company Limited (SOSA) to ART at a proportionate property value of US$18.1 million (about S$27.9 million). SOSA owns the 172-unit serviced residence, Somerset Chancellor Court, Ho Chi Minh City in Vietnam.
Ascott will realise a net divestment gain of approximately US$2.3 million (about S$3.6 million) and receive an estimated total proceed of US$14.3 million (S$22 million) including repayment of shareholder's loan, from ART. Ascott will continue to manage Somerset Chancellor Court after the divestment.
Mr Cameron Ong, Ascott’s Managing Director and CEO said: “The divestment is in line with Ascott’s strategy to focus on incubating quality assets to inject into ART. Through Ascott’s win-win business model with ART, Ascott is able to increase our income sources through property management services fee, REIT management fee and divestment gain. We will also be able to invest the divestment proceeds in potential acquisitions and developments.”
Somerset Chancellor Court is centrally located at 21-23 Nguyen Thi Minh Khai Street, District 1 in Ho Chi Minh City, with proximity to prime commercial, diplomatic and major shopping districts. The property comprises studio, one, two and three-bedroom units.
Since Ascott’s entry into Vietnam more than 10 years ago, the Group has grown its portfolio in Vietnam to the current 800 units in five properties in Ho Chi Minh City and Hanoi. Besides Somerset Chancellor Court, Ascott also operates Somerset Ho Chi Minh City, Somerset Grand Hanoi, Somerset West Lake, and Somerset Hoa Binh which is targeted to be opened in the second half of 2007.
About The Ascott Group
The Ascott Group is the largest international serviced residence owner-operator outside the United States with over 18,000 serviced residence units in key cities of Asia Pacific, Europe and the Gulf region.
The Group operates three brands –Ascott, Somerset and Citadines. Its portfolio spans 46 cities in 20 countries including London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai, Beijing, Hong Kong and Chennai in Asia; Sydney, Melbourne and Auckland in Australia / New Zealand, as well as Dubai in the Gulf region.
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 The Asset’s 2006 ‘Triple A Country Award for Best Deal in Singapore’, Travel Weekly China 2006 ‘Best Serviced Residence’, Business Traveller China 2006 ‘Best Serviced Residence Brand in China’, TTG Travel 2006 ‘Best Serviced Residence’, 2006 World Travel Awards, Business Traveller Asia Pacific 2006 ‘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, 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 property, hospitality and real estate financial services are focused in gateway cities in Asia Pacific, Europe and the Middle East. The company's property and hospitality portfolio spans more than 80 cities in 20 countries.
CapitaLand also leverages on its significant real estate asset base and market knowledge to develop real estate financial products and services in Singapore and the region. The listed subsidiaries and associates of CapitaLand include The Ascott Group, CapitaMall Trust, CapitaCommercial Trust, Ascott Residence Trust, CapitaRetail China Trust, Quill Capita Trust and Australand.
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