Ascott forms new Chinese alliance
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Serviced residence operator Ascott has strengthened its position in China, with the signing of a new alliance with Yuexiu Property.
The Hong Kong-listed property developer will now work with Ascott to expand the company’s Chinese portfolio, acquiring and developing serviced residences that Ascott will then manage.
“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,” said Lee Chee Koon, Ascott’s Deputy Chief Executive Officer and Managing Director for North Asia.
In addition to the new alliance, Ascott has also announced the signing of two new properties in Guangzhou. Scheduled to open in the second half of 2013, the 34-unit Citadines Li Zhi Wan Guangzhou and 32-unit Somerset Riviera Guangzhou will boost Ascott’s portfolio in Guangzhou to five properties.
“Guangzhou is among the top three cities in China with the strongest economic growth. Its economy has expanded by 15% annually for the past five years. Besides attracting investments from multinational companies in industries such as manufacturing, automobile and banking, Guangzhou is a leading city for international trade fairs. By deepening our presence in Guangzhou, we will be able to cater to the strong demand for quality accommodation by foreign and domestic travellers,” Lee added.
The relationship between Yuexiu Property and Ascott started in 2010 when the companies collaborated to launch the Ascott IFC Guangzhou.