“The Ascott Group’s 2006 net profit hit a record high of S$151.3 million, more than 3.6 times the net profit of S$41.9 million registered in 2005. The launch of ART also unlocked greater value for our shareholders, giving Ascott a unique competitive edge that no other serviced residence operator currently has. To ensure its international pole position as the largest serviced residence company outside the US, the group will chart growth opportunities in new frontiers, including emerging markets like Russia and the GCC countries.” Mr Cameron Ong Managing Director and CEO, The Ascott Group Limited

Ascott Beijing

In 2006, CapitaLand’s serviced residence arm, The Ascott Group, continued to reinforce its position as a global leader by further expanding its global portfolio from 15,500 serviced residence units last year to 18,500 units in 46 cities in 20 countries across Asia Pacific, Europe and the Gulf Co-operation Council (GCC) region. During the year, the group launched Ascott Residence Trust (ART), an innovative REIT that unlocked and created shareholder value, effectively transformed its business model, and positioned the group for a higher level of growth and expansion.

The group announced acquisitions in China, Hong Kong, India, Singapore, Thailand and Vietnam with a total investment of over S$600 million. These acquisitions, together with Ascott’s portfolio of operating properties, will form the pipeline of assets for potential injection into ART. In recognition of its successful creation of ART, Ascott was awarded the 2006 Triple A Country Award for Best Deal in Singapore by The Asset magazine, the largest circulated finance publication for Asian issuers.

The group ended the year with a record profit of S$151.3 million, more than 3.6 times
the net profit of S$41.9 million registered in 2005. This is the highest since the establishment
of the group in 2000.

Growing Global Presence
Ascott further strengthened its foothold in existing markets. Five new properties opened in Beijing, Dubai, Jakarta, Kuala Lumpur and Shanghai. In China, Ascott also secured new properties in Beijing, Suzhou, Tianjin, Xi’an as well as Hong Kong. Ascott adopts the strategy of using key cities as springboards into high-potential secondary cities and is poised to triple its China portfolio to 10,000 serviced residence units.

In Thailand, Ascott secured its second, third and fourth Citadines properties in Bangkok, as part of Ascott’s joint venture with Thailand’s Thakral family to launch five Citadines in the city by 2010. These properties are strategically located in Bangkok’s thriving Sukhumvit area, a key business and entertainment district.