Ascott acquires serviced residence in Hong Kong for HK$462.3 million
Singapore, 1 August 2013 – CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has acquired an operating serviced residence in Hong Kong for HK$462.3 million (approximately S$75.5 million). The property will be leased back to the seller or its nominated entity for two years. At the end of the lease in 2015, the property will be reconfigured and rebranded by Ascott.
The serviced residence has a prime location at No.138 Connaught Road West in Hong Kong Island which overlooks the Victoria Harbour. It is a five-minute walk to the new Sai Ying Pun Mass Transit Railway station that will be operational in 2015, and is surrounded by Hong Kong’s authentic cultural, dining, shopping and leisure attractions, including Sun Yat Sen Memorial Park and Macau Ferry Terminal. With the International Finance Centre, trendy Soho and Central areas just two metro train stops away, the serviced residence is perfectly suited for both business and leisure.
Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said: “Hong Kong is one of the world’s strongest hospitality markets where demand for international-class serviced residences for both business and leisure travellers continues to grow. We have acquired a serviced residence with a central location in Hong Kong Island. Through our award-winning hospitality capabilities, we will subsequently transform the property into a quality serviced residence under one of our three brands. The acquisition will further strengthen Ascott’s leadership position as the largest international serviced residence owner-operator in China with more than 8,500 apartment units in 48 properties across 18 cities.”
Mr Kevin Goh, Ascott’s Managing Director for North Asia, said: “Ascott entered Hong Kong in 2006 with Citadines Ashley Hongkong in Tsim Sha Tsui, which has been achieving strong occupancy of above 90%. In 2014, we will open Somerset Victoria Park Hongkong near Causeway Bay, one of Hong Kong’s busiest commercial, retail and entertainment districts. This latest acquisition will increase Ascott’s portfolio in Hong Kong to three properties and we will continue to seek opportunities to expand our presence in Hong Kong. With the opening of the new metro station near the acquired serviced residence and asset enhancement plans which will be carried out at the end of the lease, we are confident that the value of the property will be enhanced.”