Ascott acquires Jakarta property and extends premier brand to Vietnam

CapitaLand's wholly-owned serviced residence business unit, The Ascott Limited, announced on Thursday that it has acquired the recently-opened 185-unit Ascott Kuningan Jakarta for $90 million from its Indonesian partner, Jakarta-listed PT Ciputra Property Tbk.

Ascott has also secured a contract to manage the 222-unit Ascott Waterfront Saigon from Canh Hung Hai Thanh Corporation, an affiliate company under the management of developer, M.I.K Corporation. The river-fronting property located in downtown Ho Chi Minh City will be the first Ascott-branded serviced residence in Vietnam and Ascott's 13th property in the country when it opens in 2016.

Said Mr Lee Chee Koon, Ascott's chief executive officer, said: "2014 has been a tremendous year for Ascott as we added 25 properties with more than 4,500 apartment units to our global network through acquisitions, management contracts, strategic alliances, franchises and leases."

"With the limited supply of high quality serviced residences in Jakarta and Ascott Kuningan Jakarta's superb location within the Golden Triangle of the Central Business District (CBD), it is well-poised to cater to the large number of business travellers visiting Jakarta."

"On completion of the acquisition, the property will further strengthen Ascott's position as the

largest serviced residence owner-operator in Indonesia."

Mr Lee said that the Ascott Waterfront Saigon together with the group's existing stable of Somerset properties will enable Ascott to cross the 2,000-unit mark and extend its leadership position in Vietnam.

He added: "Globally, we have opened 14 properties with over 2,000 apartment units so far this year and will be opening Somerset Vientiane, our first serviced residence in the Lao People's Democratic Republic (Laos), on 9 December. More properties such as Citadines LiZhiWan Guangzhou and Somerset Grandview Shenzhen will open before the end of 2014."

"We will continue to seek opportunities in key cities in Asia Pacific, Europe and the Gulf region to achieve our target of 80,000 apartment units worldwide by 2020.

Ascott added that to cap off its 30th year of hospitality excellence, it has scooped a total of 19 accolades at the 2014 World Travel Awards for Asia & Australasia and Europe as well as at the Business Traveller Awards for China, Asia Pacific and Europe. These bring the number of awards that Ascott has received to date in 2014 to 84, "cementing its position as the global leader in the serviced residence industry."