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Ascott, CapitaLand’s wholly owned serviced residence unit, has entered into franchise agreements with Brazilian real estate company Vitacon for two serviced residences in São Paulo.
In a statement, Ascott revealed that Vitacon will operate the 92-unit Citadines VN Jardins São Paulo and 122-unit Citadines VN Faria Lima São Paulo (pictured), which are set to open in Q4 2017 and 2020 respectively.
Ascott and Vitacon have also secured an agreement to establish a portfolio of at least 5,000 Citadines-branded units in São Paulo.
With plans to expand in new markets such as Mexico, Chile and Argentina, Ascott aims to add 10,000 units in South America in the next five years, said Lee Chee Koon, CEO of Ascott.
“Ascott’s entry into South America through franchise is a significant move to expand our global network of properties, and in turn increase our fee income,” he said.
“Citadines is Ascott’s fastest growing brand having more than tripled its portfolio since our acquisition of the Citadines Apart’hotel chain in Europe in 2004. We have since brought the brand to Asia Pacific, Middle East and now South America. Through franchise, Ascott can leverage the partners’ local know-how and widen our global network to even more geographies.”
Ascott plans to grow its business to 80,000 units globally by 2020.
Meanwhile, Vitacon co-founder and CEO Alexandre Lafer Frankel revealed that the two new serviced residences in São Paulo “will feature co-working spaces, shared amenities such as bikes, cars, and motorcycles, as well as common spaces like cafés, gymnasiums and storage spaces”, in addition to the facilities and services offered at other Citadines properties around the world.
Vitacon has launched 40 commercial and residential projects, of which 25 have already been completed. It also manages around 1,200 furnished apartments for lease in São Paulo, offering laundry, concierge and housekeeping services.
Photo: Ascott
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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