SINGAPORE - CapitaLand's wholly owned serviced residence unit, The Ascott, has clinched seven new management contracts, adding over 1,500 apartment units to its portfolio.
It has expanded in Bangkok in Thailand, Hanoi in Vietnam, and Petaling Jaya in Malaysia, while venturing for the first time into Bandung in Indonesia, Penang and Shah Alam in Malaysia, and Nha Trang in Vietnam.
Said Ascott CEO Lee Chee Koon: "South-east Asia is Ascott's fastest growing market and second largest globally after China. We started the year strongly by increasing Ascott's portfolio in South-east Asia to more than 15,000 apartment units across 80 properties in nine countries. Currently, about 40 per cent of our apartment units under development globally are concentrated in this region."
"We continue to see strong growth opportunities in the South-east Asian markets, underpinned by rapid urbanisation, a large young population and rising domestic consumption. The recently established Asean Economic Community that aims to integrate these markets and lower trade barriers will further increase foreign investments, fuelling demand for quality accommodation."
The aim remains for Ascott to double its portfolio to 80,000 units globally by 2020.
On Ascott's entry into Bandung, Penang, Shah Alam and Nha Trang, Mr Lee said it will be the first international serviced residence company to set foot there. The new properties will strengthen Ascott's position as the largest international serviced residence owner-operator in Indonesia, Malaysia, Thailand and Vietnam, he said.
The new Somerset Ekamai Bangkok and Citadines Bayfront Nha Trang are slated to open at the end of 2016 while Somerset West Point Hanoi will open in 2017. Citadines Kings Bandung, Citadines Ara Damansara Petaling Jaya, Citadines Batu Maung Penang and Citadines Montfort Shah Alam will open progressively from 2019.