Ascott ties up with Vanke China unit to drive expansion in China

SINGAPORE - Serviced apartment group Ascott said on Friday it has entered into a strategic alliance with a unit of Vanke China, one of the largest property developers in China, to drive Ascott's expansion in the country.

Ascott will combine its capabilities in managing serviced residences with Beijing Vanke's "significant presence and expertise" in China, Ascott said in a statement.

Ascott, which is wholly owned by Singapore developer CapitaLand, also said it has secured contracts from Beijing Vanke to manage two serviced residences in Beijing, including its first Citadines-branded property in the capital city. It already manages two properties for Beijing Vanke.

The 157-unit Citadines Daxing Beijing and the 198-unit Somerset Shunyi Beijing are both scheduled to open in 2017 and will add to Ascott's portfolio of over 10,800 apartment units and 60 properties across 20 Chinese 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 Ascott's managing director for North Asia Kevin Goh.

"In China, Ascott will continue to seek opportunities in gateway cities and high growth cities with strong demand for serviced residences," he added.