Ascott widens China footprint as it forms alliance with the country’s largest construction firm

The country is also Ascott’s largest market.

Capitaland’s serviced residence business unit continues to tighten its grasp of its largest market, China, as it forms a strategic alliance with Dongfu Investment Development Corporation.

According to a press release by Capitaland, Dongfu Investment is a real estate subsidiary of China State Construction Engineering Company, China’s largest state-owned construction and infrastructure builder.

Capitaland said the partnership entails Ascott having the first right to manage apartments currently under development, as well as future projects by Dongfu Investment.

“Both parties will draw on each other’s capabilities, resources, brands and sales network to expand in China,” the press release said.

Meanwhile, the partnership also strategically follows Ascott’s recent alliances with other companies such as Alibaba’s online travel site Alitrip and Tujia.com International, China’s largest online apartment sharing platform equivalent to Airbnb, as well as leading developers such as Vanke and Yuexiu.

“In 2015, we secured over 2,500 units across 14 new properties in China. We are positive that demand for quality serviced residences will continue to grow in China, riding on the increasing domestic travel especially in the first and second tier cities,” said Kevin Goh, Ascott’s managing director for North Asia.