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November 22, 2007
Ascott buys another KL serviced residence

THE Ascott Group is adding another serviced residence in Kuala
Lumpur – its sixth property in Malaysia.

The group said yesterday it has signed a conditional agreement to
buy a 208-unit serviced residence from HSC Properties (HSCP) for
RM112.5 million (S$48.3 million).

The property will be named Somerset Ampang when it opens in the
first half of 2010.

Somerset Ampang is in Kuala Lumpur’s ‘Golden Triangle’ – the
business, shopping and entertainment district marked by Jalan
Ampang, Jalan Sultan Ismail and Jalan Bukit Bintang.

When completed, the serviced residence will be part of an integrated
development that will house one of Malaysia’s leading medical, heart
and diagnostic centres, HSC Medical Centre. The high-end medical
centre will be separately owned and managed by HSCP. It will occupy
five levels of the 23- storey development, with amenities such as a
medical spa, restaurant and cafe.

Ascott’s deputy CEO for finance and investment Chong Kee Hiong
said: ‘Demand for international-class serviced residences,
especially in the capital of Kuala Lumpur, is expected to remain
strong. Given its excellent location in Kuala Lumpur’s business and
lifestyle district, Somerset Ampang will enable Ascott to capture a
larger share of the serviced residence market.

‘Somerset Ampang will cater not only to business travellers but also
to visitors to the medical centre who require post-treatment
accommodation, as well as their families and friends.’

Somerset Ampang’s facilities will include a swimming pool, gymnasium
and children’s playground, Ascott said.

Its portfolio in Malaysia will increase to more than 760 units when
Somerset Ampang opens. Ascott’s other properties in the country are
Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon in Kuala Lumpur,
Somerset Gateway in Kuching and two corporate leasing properties in
Kuala Lumpur.

‘Somerset Ampang is our second Somerset-branded serviced residence
in KL,’ said Ascott’s deputy CEO for operations Gerald Lee. ‘Having
more serviced residences in the city enables us to leverage on
economy of scale and brand awareness for better operational
efficiency and cross-selling. Adding more properties in Malaysia
also means that our customers can choose from a wider portfolio.’

The group operates three brands – Ascott, Somerset and Citadines.
Its portfolio spans 53 cities in 23 countries, 11 of which are
cities where Ascott’s serviced residences are being newly developed.