Ascott Reit buys first property in Kuala Lumpur, expands in China

SINGAPORE - Ascott Residence Trust (Ascott Reit) is making a foray into Malaysia and growing its foothold in China.

It has inked deals worth $173.9 million in total to buy its first serviced residence in Kuala Lumpur, Malaysia, as well as Wuhan and Xi'an in China, it said in a statement on Monday.

"This is Ascott Reit's first acquisition of a serviced residence in Malaysia, which has a stable and growing economy. The acquisition of the two properties in Wuhan and Xi'an will further expand our presence in China," said Mr Lim Jit Poh, chairman of the Reit's manager in a statement.

He added that the Reit will :continue to seek acquisitions in key cities in Asia Pacific and Europe".

Ascott Reit will have close to 10,000 serviced apartment units after the acquisitions. 

The Reit will acquire the 207-unit Somerset Ampang Kuala Lumpur from The Ascott Limited (Ascott) for RM 175 million or $67.4 million.

In China, it will buy the 249-unit Citadines Zhuankou Wuhan for 252 million yuan (S$51.4 million) and the 251-unit Citadines Gaoxin Xi'an for 270 million yuan or $55.1 million from the Ascott Serviced Residence (China) Fund.

All three properties will continue to be managed by Ascott.

The Ascott Limited holds a 36.1 per cent stake in the China fund.