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Ascott-Vanke alliance plans expansion in China

By Hu Yuanyuan (chinadaily.com.cn) Updated: 2014-06-09 16:27

Ascott Limited, the wholly-owned serviced residence business unit of Singapore-based CapitaLand Group, has entered into a strategic alliance with Beijing Vanke Co Ltd to drive Ascott's expansion plans in China.

Beijing Vanke will leverage its significant presence and expertise to develop serviced residences in China. Ascott will in turn provide its leading capabilities in managing serviced residences, the company's top management said on Monday.

Ascott-Vanke alliance plans expansion in China
China Vanke posts first profit decline in 12 years

Ascott-Vanke alliance plans expansion in China
CapitaLand's Ascott expands in China

In addition to establishing the strategic alliance, Ascott has secured contracts from Beijing Vanke to manage two more serviced residences in Beijing.

Ascott's first Citadines-branded serviced residence in Beijing, the 157-unit Citadines Daxing Beijing, and the 198-unit Somerset Shunyi Beijing are both slated to open in 2017. The two properties will strengthen Ascott's leadership position as the largest international serviced residence owner-operator in China, with over 10,800 apartment units in 60 properties across 20 cities.

"China remains our key growth market. Besides expanding through management contracts and investments, strategic alliances with leading developers like Vanke will enable us to combine our expertise and industry knowledge to create a mutually beneficial partnership for both Ascott and Vanke," said Kevin Goh, Ascott's Managing Director for North Asia.

With these two latest contracts in Beijing, Ascott will manage a total of four serviced residences with close to 700 apartment units for Vanke, including the premier Ascott Midtown Suzhou, which just opened in April 2014, and Somerset Wuxi, which is expected to open next year.

According to Goh, Ascott will continue to seek opportunities in gateway cities and high growth cities with strong demand for serviced residences.

The Ascott Limited is a Singapore company that has grown to be the world's largest international serviced residence owner-operator. It has over 23,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as over 10,000 units which are under development, making a total of more than 34,000 units in over 200 properties.

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