Ascott Divests Somerset Bayswater In London For £56.1 million (S$172.2 million)
Divestment gain to be used to seek higher-yield assets in Europe
Singapore, 13 July 2007 – The Ascott Group (Ascott) is divesting its effective 50% stake in Somerset Bayswater, a serviced residence in London, for £56.1 million (S$172.2 million) to The Residential Land Group in the United Kingdom. Ascott will realise a net gain of £5.8 million (S$17.8 million) from the divestment after taking into account transaction costs.
The 194-unit Somerset Bayswater is located at 42 Princes Square, London W2 4AD, United Kingdom. The property will be sold on legal completion of the transaction which is expected to take place by September 2007. Upon completion of the divestment, Ascott will also cease to manage the property. Somerset Bayswater is the last property which is jointly-owned and managed by Ascott under its joint venture with Crown Dilmun.
Mr Gerald Lee, Ascott’s Chief Executive Officer for Europe said: “This divestment is in line with Ascott’s 'asset light, asset right' strategy and it enables us to further unlock shareholder value. The divestment gain will enable Ascott to invest in higher-yield assets and high growth markets in Europe. We recently acquired a property in Munich which is scheduled to open in 2009, and are currently seeking other suitable properties in key European cities as part of our expansion in Europe. Going forward, our European operations will remain an important contributor to the Group.”
Of Ascott’s over 14,000 operating units globally, 5,000 of these are in 17 cities in Europe. In London, the Group currently operates five properties including Ascott London Mayfair, Citadines London Barbican, Citadines London Holborn-Covent Garden, Citadines London South Kensington and Citadines London Trafalgar Square.
About The Ascott Group
The Ascott Group is the largest international serviced residence owner-operator outside the United States with over 19,500 serviced residence units in key cities of Asia Pacific, Europe and the Gulf region. This includes over 5,500 units which are under development.
The Group operates three brands – Ascott, Somerset and Citadines. Its portfolio spans 49 cities in 21 countries, eight of which are new cities where Ascott’s serviced residences are being developed. 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 TravelWeekly Asia Industry Awards 2007 ‘Best Serviced Residence (Group)’, 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: Awards and Accolades.
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.
For more information on The Ascott Group’s property listings, visit Group Directory Listing.
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