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Ascott secures 7 new properties, set to outpace last year’s record growth

SINGAPORE — CapitaLand’s wholly-owned serviced residence business unit, The Ascott, said yesterday it secured another seven new properties in as many cities in Asia, adding a total of 1,714 units to its portfolio as it looks to surpass last year’s record growth.

SINGAPORE — CapitaLand’s wholly-owned serviced residence business unit, The Ascott, said yesterday it secured another seven new properties in as many cities in Asia, adding a total of 1,714 units to its portfolio as it looks to surpass last year’s record growth.

“Ascott is set to continue this expansion momentum for the rest of the year to outperform 2015, which was our record year of growth with a total of 6,700 units added to our portfolio. We are able to scale up quickly because of the strong alliances with global partners, as well as industry leaders from land owners to property developers, construction firms, online platforms and tech companies,” said Ascott’s CEO Lee Chee Koon.

“This year, we have added more than 5,000 units in 26 properties, 22 of which are in Asia, while the remaining properties are in New York, London and Al Khobar in the Middle East. The addition of these seven management contracts will further boost our income from management fees.”

The seven properties are in Karawang in Indonesia, Putrajaya in Malaysia, Danang in Vietnam, Tokyo in Japan as well as Changsha, Shanghai and Shaoxing in China. They will deepen Ascott’s presence in Danang, Changsha, Shanghai and Tokyo, as well as enable the leading serviced residence operator to expand its footprint across more cities in Asia.

Somerset West Hongqiao Shanghai is the group’s second property secured under its strategic alliance with Dongfu Investment Development Corp, a subsidiary of China State Construction Engineering Company, the country’s largest builder. The 200-unit Somerset West Hongqiao Shanghai will welcome its first guests in 2019.

The Citadines Blue Cove Danang, slated to open in 2018, will be Vietnam’s largest serviced residence and Ascott’s largest property globally with 550 units.

South-east Asia remains Ascott’s fastest-growing market and second largest globally after China, where it has the most number of properties.

The 124-unit Somerset Ginza East Tokyo, slated to open next month, is surrounded by office complexes and is a five-minute walk from the Higashi-Ginza and Tsukiji metro stations. Including Somerset Ginza East Tokyo, Ascott has more than 3,500 apartment units in seven serviced residences and 39 rental housing properties across eight cities in Japan.

The 135-unit Citadines Festive Walk Karawang, the 180-unit Citadines Xingsha Changsha and the 250-unit Citadines Keqiao Shaoxing are scheduled to open in 2018, while the 275-unit Somerset Putrajaya is expected to open in 2020.

Ascott currently has more than 47,000 serviced residence units in more than 290 properties, with about 28,000 operating units in cities across the Americas, Asia-Pacific, Europe and the Middle East, as well as more than 19,000 units under development.

Mr Lee said Ascott is confident of achieving its target of 80,000 units globally by 2020.

“We will be looking to establish more strategic alliances with partners and seek more investment opportunities, management contracts and franchises,” he said.

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