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Left
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Tony Soh Chief Strategy and
Planning Officer, The Ascott Group Limited
Hazel Chew Chief Financial
Officer, The Ascott Group Limited
Chong Kee Hiong Deputy CEO,
Finance & Investment,
The Ascott Group Limited
Jennie Chua President & CEO,
The Ascott Group Limited
Ng Lai Leng Chief Corporate
Officer, The Ascott Group Limited
Ee Chee Hong CEO, China, The
Ascott Group Limited
Not in picture
Gerald Lee Deputy CEO, Operations,
The Ascott Group
Limited |
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“The
Ascott Group ended 2007 strong, with record net
profit of S$177.3 million, an increase of 8% compared
to the previous year. Revenue was up 7% to S$435.3
million, and profit from operating assets also
rose 25% to S$52.5 million. We consolidated our
leadership position in markets where we have presence,
and added three more countries and 10 more cities
to our portfolio. Ascott crossed the 20,000-unit
mark with 158 properties spanning 55 cities in
23 countries, making us the largest international
serviced residence owner-operator in the world.”
President & CEO,
The Ascott Group Limited |
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In 2007, CapitaLand’s
serviced residence arm, The Ascott Group Limited
(Ascott), continued to entrench its position as
a global leader. Ascott grew its business and expanded
its portfolio of serviced residences under the
three award-winning brands – Ascott, Somerset
and Citadines.
It consolidated its leadership position in markets
where it has presence, and added three more countries
and 10 more cities to its portfolio through acquisitions
and management contracts. As part of its global
expansion, it also ventured into emerging European
markets and became a forerunner in three more countries – Russia,
Kazakhstan and Georgia.
In 2007, Ascott announced 36 new properties with
more than 3,500 units. Its portfolio crossed the
20,000-unit mark to 20,449 units. With 158 properties,
Ascott’s presence spans 55 cities and 23
countries across Asia Pacific, Europe and the Gulf
region, making it the largest international serviced
residence owner-operator in the world.
To work its assets harder, Ascott re-invested divestment
proceeds in higher-yield assets and the enhancement of existing properties for better yield
and operating performance. We divested six properties in China, Singapore, United Kingdom
and Vietnam; divestment proceeds totalled S$524.3
million and total net divestment gain was S$112.8
million. These proceeds will enable Ascott to continue
to acquire and incubate more quality assets, paving
the way for greater portfolio gain in the future.
Apart from divestments, Ascott also committed a
total of S$576.0 million in 13 investments in China,
Germany, India, Japan, Malaysia, Russia, Singapore
and United Kingdom.
Ascott continued to seek innovative ways to grow
its business and optimise capital allocation.
In
April 2007, it launched the Ascott China Fund (ACF).
The fund, which is 33% owned by Ascott, is the
first private equity fund dedicated to investing
in serviced residences across China. It was set
up as part of Ascott’s strategy to propel
further growth in China. The fund closed with a
capital commitment of US$500.0 million.
Ascott Residence Trust (ART), the world’s
first pan-Asian serviced residence REIT, which
was successfully launched in March 2006, also
registered strong growth. Its portfolio value grew 74% from an initial S$856.0 million to about S$1.5
billion. ART’s portfolio size also grew from
the initial 2,068 units in 12 properties to 3,461
units in 36 properties by the end of 2007.
Ascott ended 2007 strong, with a record net profit
of S$177.3 million, an increase of 8% compared
to the previous year. Revenue was also up 7% to
S$435.3 million, and profit from operating assets
also rose 25% to S$52.5 million. This was attributed
to better operating performance in most of the
markets in which the Group has presence as well
as higher fee-based income from managing ART and ACF. |
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