Ascott inks development deal with Yuexiu Property

Plus two more contracts in Guangzhou.

According to a release, CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has entered into a strategic alliance with Yuexiu Property Company Limited (Yuexiu Property), one of the largest property developers in Guangzhou, to drive its expansion plans in China. 

For this strategic alliance, Hong Kong-listed Yuexiu Property will leverage on its significant presence and expertise to acquire and develop serviced residences in China. Ascott will in turn provide its leading capabilities in managing award-winning serviced residences.

Besides establishing a strategic alliance with Yuexiu Property, Ascott has separately secured contracts in Guangzhou to manage two more serviced residences named Citadines LiZhiWan Guangzhou and Somerset Riviera Guangzhou.

Slated to open in the second half of 2013, the two properties will strengthen Ascott’s leadership position as the largest international serviced residence owner-operator in China, with over 8,000 apartment units in 46 properties across 17 cities.

Mr Lee Chee Koon, Ascott’s Deputy Chief Executive Officer and Managing Director for North Asia, said: “China is a key market for Ascott as it continues to attract significant foreign direct investment which generates increasing demand for serviced residences. To achieve our target of 12,000 apartment units in China by 2015, we will expand in tier one cities like Beijing, Shanghai and Guangzhou as well as other high growth cities through investments and management contracts. Strategic alliances with leading developers like Yuexiu Property will enable us to combine our expertise and industry knowledge to further extend Ascott’s lead in China.”