Ascott Signs Compensation Agreement For Compulsory Acquisition Of Non-Core Asset - The Masters Golf And Country Club In China
Singapore, 29 April 2007 – The Ascott Group (Ascott) has signed a compensation agreement with Land Requisition Office of the Guangzhou Municipal People’s Government (Guangzhou Land Office) for its non-core asset, The Masters Golf & Country Club in Guangzhou, China for a total cash compensation of S$199 million (RMB 1 billion). This transaction is a result of a compulsory acquisition of the land site where The Masters Golf & Country Club is situated, for the planned construction of the Guangzhou-Wuhan public railway lines.
Under the terms of the compensation agreement signed between the Guangzhou Land Office and Ascott’s indirectly-owned subsidiary, Guangzhou F C Golf & Country Club Co Ltd, the Guangzhou Land Office has agreed to acquire the land, the building assets and ancillary facilities of The Masters Golf & Country Club.
The club was developed in the mid 1990’s by one of the merger entities before the formation of The Ascott Group Limited and was financed mainly by shareholder’s loans. As provisions were made in the past to write down the shareholder’s loans, this transaction will result in an estimated write-back of S$91 million.
Mr Cameron Ong, Managing Director and CEO of The Ascott Group said: “We would like to thank our joint venture partner, Guangzhou Liwan District Government, for the support that they have provided to The Ascott Group during the past years. Ascott has been operating in China for the past ten years and remains committed to building a strong presence for our core business of serviced residence operations in China. We currently have about 4,000 serviced residence units in eight cities, and we’re targeting to achieve 10,000 units through further expansion in China by 2010.”
Located in the Liwan district, the golf club has an 18-hole golf course covering a total land area of 934,498 square metres with a 64-bay driving range, a 6,000 square metre club house and staff accommodation.
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.
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