Ascott forms strategic alliance with Yuexin Property and deepens its presence in Guangzhou with two new contracts
Singapore, 17 January 2013 – CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has entered into a strategic alliance with Yuexiu Property Company Limited (Yuexiu Property), one of the largest property developers in Guangzhou, to drive its expansion plans in China. For this strategic alliance, Hong Kong-listed Yuexiu Property will leverage on its significant presence and expertise to acquire and develop serviced residences in China. Ascott will in turn provide its leading capabilities in managing award-winning serviced residences.
Besides establishing a strategic alliance with Yuexiu Property, Ascott has separately secured contracts in Guangzhou to manage two more serviced residences named Citadines LiZhiWan Guangzhou and Somerset Riviera Guangzhou. Slated to open in the second half of 2013, the two properties will strengthen Ascott’s leadership position as the largest international serviced residence owner-operator in China, with over 8,000 apartment units in 46 properties across 17 cities.
Mr Lee Chee Koon, Ascott’s Deputy Chief Executive Officer and Managing Director for North Asia, said: “China is a key market for Ascott as it continues to attract significant foreign direct investment which generates increasing demand for serviced residences. To achieve our target of 12,000 apartment units in China by 2015, we will expand in tier one cities like Beijing, Shanghai and Guangzhou as well as other high growth cities through investments and management contracts. Strategic alliances with leading developers like Yuexiu Property will enable us to combine our expertise and industry knowledge to further extend Ascott’s lead in China.”
Mr Lee added: “Guangzhou is among the top three cities in China with the strongest economic growth. Its economy has expanded by 15% annually for the past five years. Besides attracting investments from multinational companies in industries such as manufacturing, automobile and banking, Guangzhou is a leading city for international trade fairs. By deepening our presence in Guangzhou, we will be able to cater to the strong demand for quality accommodation by foreign and domestic travellers.”
Mr Zhu Chen, Yuexiu Property’s General Manager, said: “We entered into a strategic alliance with Ascott due to its strong branding, worldwide network and reputation for product and service excellence. Our companies first collaborated when we awarded the management contract for the premier Ascott IFC Guangzhou in 2010. The serviced residence is part of our new Guangzhou International Finance Centre which aims to be the most successful mixed development in the city. We are confident that the serviced residence will perform very well given Ascott’s track record.”
About Citadines LiZhiWan Guangzhou and Somerset Riviera Guangzhou
The 34-unit Citadines LiZhiWan Guangzhou is strategically located in the city’s historic LiZhiWan area which will be redeveloped as a commercial and cultural hub. The serviced residence is situated along a scenic river lined with antique shops and The Liwan Museum. It is also within walking distance from Longjin West Road which is known for its many Cantonese restaurants.
The serviced residence will provide independent travellers the flexibility to choose the services they require, a range of studios and one-bedroom apartments, as well as facilities such as a breakfast lounge, gymnasium and business centre.
The 32-unit Somerset Riviera Guangzhou is situated right next to the Pearl River and offers spectacular views of Er-sha Island and Dongshan Lake Park. The serviced residence is well connected to the city’s major roads, and provides convenient access to Zhujiang New Town and Tianhe Bei business districts where many multinational companies, shopping, dining and entertainment outlets are located.
All apartments in Somerset Riviera Guangzhou will be spacious four-bedroom units that are ideal for expatriates and travellers with families. Residents can enjoy facilities including a swimming pool, gymnasium, residents’ lounge and business centre.
In Guangzhou, Ascott currently operates Ascott Guangzhou, Ascott IFC Guangzhou and Springdale Serviced Residence Guangzhou.