Ascott Expands China Presence With Acquisitions Of Two Citadines In Shanghai And Xi'an
For Immediate Release
ASCOTT EXPANDS CHINA PRESENCE WITH ACQUISITIONS OF TWO CITADINES IN SHANGHAI AND XI’AN
Singapore, 30 March 2007 – As part of The Ascott Group’s (Ascott) target to achieve 10,000 serviced residence units in China by 2010, it has acquired two properties in Shanghai and Xi’an. Ascott will invest up to a total of US$44.6 million in the two developments which will be operated under the Group’s Citadines brand. These acquisitions will increase Ascott’s China portfolio by more than 340 serviced residence units to a total of about 4,000 units.
In Shanghai, Ascott has entered into a sale and purchase agreement with Jing Wealth Enterprises Limited to acquire a 100% stake in an existing serviced residence, Ying Biao Garden Apartment, located in the city’s Pudong New District. The property comprises one block of eight-storey serviced residences and seven blocks of four-storey semi-detached houses. The property will be branded as Citadines Shanghai Biyun and is targeted to re-open in the first half of 2008 with 182 units after refurbishment.
In Xi’an, Ascott has signed a sale and purchase agreement with Skillplus Enterprise Pte Ltd to acquire its effective 75% stake in a building located at Beilin District. The building will be developed into a 162-unit Citadines Xi’an Central. In April 2006, Ascott was already awarded the contract to manage the property for 10 years, with an option to renew the contract for another 10 years. The property is targeted to be opened in the second half of 2007.
Mr Cameron Ong, Ascott’s Managing Director and CEO said: “Despite keen competition in China’s hospitality market, Ascott remains the largest leading international serviced residence company in China. We managed to stay ahead of the competition with our strong product and service reputation. These new investments further demonstrate our long-term commitment to China, and the importance of China as a key growth market for Ascott. We are on track to achieving our target of 10,000 serviced residence units in China by 2010.”
“Besides finding suitable greenfield sites, we will seek and convert partially or fully-completed developments to shorten the time to market. We will also launch more serviced residences in China to provide business travellers with the entire range of luxury to mid-tier residences through our three brands - Ascott, Somerset and Citadines. Going forward, Citadines will be a key brand which will drive the Group’s expansion in China. With these two new properties, we now have a total of seven Citadines in China,” added Mr Ong.
Citadines Shanghai Biyun
The property is located at Lane 450, Hong Feng Road in Pudong. It is about a five-minute drive from Jinqiao Export Processing Zone, the national export processing development zone in Pudong District which houses over 40 Fortune 500 companies. It is also a 10-minute drive from Zhangjiang High-Tech Park in Pudong District, which has been established as a national-level park designated for the development of new and high technology, and houses more than 30 Fortune 500 companies.
Citadines Xi’an Central
Citadines Xi’an Central is located at No. 119, Zhubashi Street, Nanyuan Men in Beilin District. The property is merely a one-minute walk to Xidajie Street, the main shopping street in Xi’an. Several mid to high-end shopping centres, supermarkets, restaurants and office buildings are within the vicinity. Citadines Xi’an Central is a 30-minute drive from Xi’an’s two major development zones, the Xi’an National Hi-Tech Industrial Development Zone and Xi’an Economic & Technological Development Zone, where numerous Fortune 500 companies are located.
Ascott’s current portfolio in China stands at 20 properties in Beijing, Dalian, Guangzhou, Shanghai, Suzhou, Tianjin, Xi’an and Hong Kong.
About The Ascott Group
The Ascott Group is the largest international serviced residence owner-operator outside the United States with about 19,000 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 47 cities in 21 countries including London, Paris, Brussels, Berlin, Barcelona and Moscow 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 Vietnam Economic Times 2006 ‘Golden Dragon Award’, 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 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.
Celina Low, Vice President, Corporate Communications
Tel: (65) 6586 0475
Hp: (65) 9682 5458
Joan Tan, Senior Manager, Corporate Communications
Tel: (65) 6586 0474
Hp: (65) 9743 9503
Sandy Leng, Investor Relations
Tel: (65) 6586 7150
Hp: (65) 9018 5168