Business

The Ascott triples US portfolio

Serviced residence firm The Ascott made two major investments this month.

The CapitaLand-owned company said yesterday it is acquiring an 80 per cent stake in Synergy Global Housing for US$33.7 million (S$46 million). This will triple its US portfolio to 3,000 units and raise the global total to almost 70,000.

The move came after an A$180 million (S$194 million) acquisition earlier this month of a 60 per cent stake in Quest Apartment Hotels. The deal lifted its stake in the firm to 80 per cent and made The Ascott the largest serviced residence provider in Australasia.

But it is not just about size, CapitaLand president and group chief executive Lim Ming Yan said yesterday.

"It is about access to a global customer base, which will allow us to know the flow of people, of business across different cities and companies and... enable us to more effectively deploy capital into real estate," he said.

The Synergy acquisition is expected to give insights into the emerging corporate housing industry in Asia, especially in China, where rental options for workers are being studied as property ownership gets more pricey. - THE STRAITS TIMES

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