Ascott To Acquire Its Fourth And Largest Serviced Residence Property In India
The Group is on track to achieve 2,000 serviced residence units in India by 2010
Singapore, 6 June 2007 – The Ascott Group (Ascott) has signed a joint venture agreement with The Rattha Group (Rattha) to acquire its fourth and largest property in India which will be developed into a serviced residence. This is part of Ascott’s master development agreement (MDA) signed with Rattha in August 2006. The MDA aims to acquire and develop seven serviced residences in India by 2010.
Ascott will invest INR 408.3 million (S$15.4 million) to acquire a 40% equity stake in the property to be named Citadines Chennai OMR Gateway. Rattha will hold the remaining majority stake. Ascott will also manage the property for 10 years with an option to renew the management contract for another 10 years.
Mr Cameron Ong, Ascott’s Managing Director and CEO said: “India is a key growth market for Ascott. According to statistics from Economist Intelligence Unit, India is poised to become the world’s third largest economy by 2010. Its foreign direct investment is projected to grow by 28% by 2010 from 2006’s figures; however it lacks the supply of quality accommodation to meet the increasing demand from inter-city business travellers and expatriates.”
“Ascott was the first international serviced residence company to enter Chennai. With the addition of Citadines Chennai OMR Gateway, Ascott has close to 1,000 units under development, and we are on track with our expansion target to achieve 2,000 units in India by 2010,” added Mr Ong.
Citadines Chennai OMR Gateway, which is targeted to open in the first half of 2010, will complement Ascott’s three other properties in India - Somerset Whitefield in Bangalore, Somerset Greenways, Chennai and Citadines Chennai Boulevard. These three properties are slated to open in 2008. Together, these properties will cater to the accommodation needs of business travellers and expatriates working in the various enclaves of the central business district, Information Technology (IT) belt and manufacturing zone.
Citadines Chennai OMR Gateway will have about 300 units, the largest number of units among Ascott’s properties in India. The serviced residence is strategically located along Old Mahabalipuram Road, commonly known as OMR or the IT Highway.
OMR is a 25 kilometre-zone which houses about 10 IT parks including Ascendas and Tidel Park. A further 20 IT parks are currently under development in the area and will be completed by 2009. A shopping centre situated one kilometre away from the property is also due for completion in about two years’ time.
About The Ascott Group
The Ascott Group is the largest international serviced residence owner-operator outside the United States with over 19,000 serviced residence units in key cities of Asia Pacific, Europe and the Gulf region. This includes 5,400 units which are under development.
The Group operates three brands – Ascott, Somerset and Citadines. Its portfolio spans 48 cities in 21 countries, eight of which are new cities where Ascott’s serviced residences are under development. Ascott’s properties can be found in cities including London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai, Beijing and Hong Kong 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 China 2007 ‘Top 100 Serviced Apartments Award’, 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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