Ascott inks JV with Rattha Co to develop properties

Singapore, June 6 (UNI) Ascott Group Ltd, the biggest serviced-apartment operator in Asia and Europe, has signed a joint venture agreement with Rattha Holding Company to acquire its fourth and largest property in India which will be developed into a serviced residence.

Ascott will acquire a 40 per cent equity stake in the joint venture company to be named Citadines Chennai OMR Gateway, while remaining 60 per cent will be held with Rattha.

It will also manage the property for 10 years with an option to renew the management contract for another 10 years.

The agreement is part of Ascott's master development agreement (MDA) signed with Rattha in August last year. The MDA aims to acquire and develop seven serviced residences in India by 2010.

''India is a key growth market for us. According to statistics from Economist Intelligence Unit, India is poised to become the world's third largest economy by 2010. Its foreign direct investment is projected to grow by 28 per cent by 2010,'' Ascott's Managing Director and CEO Cameron Ong said.

Ascott was the first international serviced residence company to enter Chennai. With the addition of Citadines Chennai OMR Gateway, Ascott has close to 1,000 units under development, and plans to achieve 2,000 units in India by 2010.

Citadines Chennai OMR Gateway, which is targeted to open in the first half of 2010, will complement Ascott's three other properties in India - Somerset Whitefield in Bangalore, Somerset Greenways, Chennai and Citadines Chennai Boulevard. These three properties are slated to open in 2008.

Together, these properties will cater to the accommodation needs of business travellers and expatriates working in the various enclaves of the central business district, Information Technology (IT) belt and manufacturing zone.

Singapore-based Ascott has more than 19,000 units in Asia, Europe and the Gulf region under its Ascott, Somerset and Citadines brands, and aims to increase revenue by expanding the number to 25,000 by 2010, especially in emerging markets. The company said earlier that it aims to boost the number of its serviced-apartment units in China to 10,000 and to 2,000 in India by 2010.

UNI