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Singapore-Based Ascott Group Plans To Develop "Serviced Residences" In Hyderabad, Chennai and Bangalore
Posted by Pradeep Sadanapalli | August 26, 2006 | 613 views
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Loading ...Singapore-based Ascott Group, the biggest serviced-apartment operator in Asia, has inked a master development plan by teaming up with the Chennai-based privately held Indian conglomerate, Rattha Group to acquire and develop seven `serviced residences’ across India by 2010. Together, the partners will invest more than S$340 million in the four southern states of Tamil Nadu, Andhra Pradesh, Karnataka and Maharashtra. Ascott plans to focus on the cities of Chennai, Hyderabad and Bangalore.Under the master agreement, each of the seven proposed serviced residences will have separate joint ventures and see flexible equity ownerships between the Singapore group and Rattha. (Serviced residences are also known as extended-stay hotels. They are designed to provide a home ambience for a traveller who may have to stay in an area for a few days.) The seven properties will have a total of at least 1,000 units. They will form part of Ascott’s overall target to achieve 2,000 units in India in four years’ time.
The development of the proposed seven service residences is estimated to involve an investment of around $220 million (Rs. 1,000 crore). HS Rattha, CEO of the Rattha Group said, ‘by leveraging on our knowledge and expertise, we will be able to better capitalise on the strong growth prospects of the serviced residence industry in India’.He also said that lands have been acquired in Chennai, Bangalore and Hyderabad to commence development for three projects with about 600 units by the end of this year.
Under the umbrella agreement, Ascott will manage these properties for a period of 10 years with an option to renew the contract for another ten years. “Our strategy for India is to capitalise on opportunities in key high-growth emerging markets, while we set up a foothold in key gateway cities,” said Cameron Ong, Managing Director and CEO of Ascott. The new serviced residences will complement Ascott’s parent CapitaLand’s growing presence in India’s residential and retail mall sector.
As a first step towards implementing the master plan, the two groups have entered into a joint venture agreement to acquire the first serviced residence in Chennai. The property, located in MRC Nagar, will be branded Somerset Greenways. It will have 210 units and comprise studios and one and two bedrooms. It is expected to go operational by the first half of 2008. In the Chennai venture, Ascott will have a 40 per cent stake and Rattha will hold the balance.
Ascott is also looking at other potential partnerships to further expand its presence in India, into other cities including New Delhi and Mumbai.
About Ascott Group:
The Ascott Group is a leading international serviced residence company with over 17,000 serviced residence units in key cities of Asia Pacific, Europe and the Middle East. The multinational company’s core businesses in property, hospitality and real estate financial services are focused in gateway cities in Asia Pacific, Europe and the Middle East. Listed on the mainboard of the Singapore Exchange, Ascott is the serviced residence arm of CapitaLand Limited, one of Asia’s largest listed property companies.
Ascott’s global presence spans 44 cities in 18 countries. These include London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Pattaya, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai, Beijing, Xi’an and Hong Kong in Asia; Sydney, Melbourne and Auckland in Australia / New Zealand as well as Dubai in the Middle East.
Headquartered in Singapore, The Ascott Group pioneered Asia Pacific’s first branded luxury serviced residence in 1984. The Group also established the world’s first pan-Asian serviced residence real estate investment trust, Ascott Residence Trust in 2006. The Group operates three brands – The Ascott, Somerset and Citadines. Its achievements have been recognised internationally. It has clinched numerous prestigious awards including the 2006 ‘China’s Top 100 Serviced Apartments’ award.
About Ratha Group:
The Rattha group is in the business of exports and infrastructure development. The alliance with the Ascott will herald its entry into the hospitality sector. The Chennai group says that it has acquired land banks in metros to facilitate its foray into the hospitality field.
Sources:
Channel News Asia
The Hindu
NewsTodayNet
The Ascott Group
Topics: Business News, Real Estate |
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