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CapitaLand’s serviced residence arm Ascott said on Monday (9 Apr) that it has partnered with developers in China, Japan and Thailand to strengthen its presence in these markets and drive its global expansion.
In China, the company has signed a deal with Riverside Group to launch serviced residences in Chongqing, Zhejiang and upcoming towns. For starters, Ascott will operate two properties with 350 units in the first two mentioned areas. This follows a contract with the Chinese township developer to run the 190-unit Ascott Riverside Garden Beijing which opened in November.
Over in Japan, Ascott and listed property firm NTT Urban Development Corp are currently working on two developments in Fukuoka and Yokohama. Both have also agreed to jointly explore serviced residence opportunities in the country.
In Thailand, Ascott is helping listed property player Ananda Development venture into the serviced residence business through a strategic alliance. The first four properties under this tie-up comprise Ascott Thonglor Bangkok, Somerset Rama 9 Bangkok, Ascott Embassy Sathorn Bangkok and another property in Sukhumvit 8. Slated to open between 2020 and 2021, these will offer nearly 1,500 units in the capital.
“The alliances we have forged allow us to gain access to a variety of large scale, quality projects to fast-track Ascott’s expansion and broaden our reach to even more gateway cities. Having some of the biggest industry players choose to partner us speaks volume of Ascott’s reputation and expertise in managing award-winning serviced residences globally for over 30 years,” said Ascott’s CEO Kevin Goh.
With these partnerships, he is confident that the company can achieve its global target of operating 80,000 units this year and doubling its portfolio to 160,000 units by 2023.
In addition, Ascott witnessed a stellar growth in the number of units during the start of the year.
“Serviced residences are in high demand in many parts of the world. In the first quarter of 2018, we have added over 5,000 units to Ascott’s portfolio – more than 300 percent growth on a year-on-year basis,” noted Goh.
In Q2 2018, the company expects to sign management and lease agreements for another 14 properties with a total of 3,400 units across 10 cities in China, Japan, Thailand and Indonesia.
Globally, Ascott currently has over 43,000 serviced residence units, while another 32,000 units are under development, providing it with more than 76,000 units across over 500 properties.
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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