Singapore's Ascott to have 1,600 serviced apartment units in India

Ronald Tay

Singapore-based The Ascott Ltd will be managing a portfolio of 1,600 serviced apartment units in the Indian market in the coming years. A wholly-owned serviced residence business unit of Singapore's CapitaLand, Ascott is taking the equity participation route to expand its presence in the country. The company currently has a portfolio of 7 projects in key Indian metros. Under various stages of development, these projects are coming up in cities like Bangalore, Ahmedabad, Chennai and Hyderabad.

Overseeing the company’s business in India, Ronald Tay, chief investment officer, The Ascott Ltd, said, the first serviced residence, Somerset Greenways, will open in the first half of 2011. “Featuring 187 apartment units, the property is located in the MRC Nagar area in Chennai. This apart, we have recently partnered with RMZ Corp to develop a 203-unit serviced residence there. It's a joint venture wherein Ascott has acquired 50% stake in the project for Rs 151.75 mn (approximately Singapore $4.36 mn),” said Tay. This JV with Bangalore-based realtor (RMZ) will also see launch of Ascott's first Citadines apart’hotel brand in India to be operational in 2014.

On whether the company will make further investments in India going forward, Tay said there is tremendous potential for Ascott to grow in India. “We will expand our presence in through both direct investments and management contracts. In addition to expanding presence in the existing cities, we will be continuously seeking opportunities for growth in other markets like Mumbai, New Delhi and Pune,” he said without divulging financial details about their overall investment plans in India.

Citadines Galleria Bangalore

Prior to the RMZ joint venture, Ascott has invested in all the 6 developments being signed in India thus far. The company top management feels India is one of the key growth engines of Asia and continues to attract foreign investments due to its huge domestic market and sizeable educated workforce. On the demand side, the management believes that with increasing business travel into India and inter-city travel, demand for quality accommodation will increase significantly.

As for The Citadines Galleria Bangalore project is concerned, it will be part of a mixed development called RMZ Galleria and will be Ascott’s second property in the city. Ascott will manage the serviced apartment units when it gets operational in 2014. Located in Yelanhanka, the property is close to industrial parks such as the Kirloskar Business Park and Manyata Tech Park.

Also read: Serviced apartments' growth on a fast track in India