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The Ascott, the wholly-owned serviced residence business unit of CapitaLand, is acquiring an 80 percent stake in Synergy Global Housing (Synergy), tripling its US portfolio from over 1,000 units to around 3,000 units.
The transaction is the latest of the company’s acquisition spree to scale up its global presence.
Ascott acquired a majority stake in Quest Apartment Hotels last month to become the biggest serviced residence provider in Australasia. In May, it acquired Hotel Central Fifth Avenue New York, which is set to be rebranded to Citadines Fifth Avenue New York by 2018, while its real estate investment trust – Ascott Residence Trust – acquired DoubleTree by Hilton Hotel New York – Times Square South.
Ascott chief executive officer Lee Chee Koon revealed that Ascott “has been a partner of Synergy to cross sell our units since 2013”.
In a release, Ascott noted that aside from Global Solution Centres in Hyderabad, India, Dublin, Ireland; and Singapore; Synergy also has a strong foothold in the US, where it leases apartments from property owners and partners to rent to corporate clients.
This investment, for instance, gives Ascott an “immediate presence and access to corporations based in Silicon Valley, which include high-tech powerhouses boasting achievements and influence that extend well beyond the San Francisco Bay Area”.
“With Synergy, it will expand our global cross-selling and distribution network as well as enlarge our talent pool. Ascott will also get an uplift by over 2,000 units located predominantly in the U.S., and increase our global portfolio to close to 70,000 units,” said Lee.
“We are confident of surpassing our target of 80,000 units well ahead of 2020, as we look at more opportunities to grow through investments, management contracts, franchises and strategic alliances.”
And with US as a key market, the company sees a potential to expand further in cities like Boston, New York, San Francisco, Los Angeles and Washington DC.
This article was edited by Denise Djong.
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