The Ascott Group (Ascott) has signed a joint venture agreement with The Rattha Group (Rattha) to acquire its fourth and largest serviced apartment in India. This is part of Ascott’s master development agreement signed with Rattha in August 2006 to acquire and develop seven serviced apartments in India by 2010.

Ascott will invest INR 408.3 million (US$10 million) for a 40% equity stake in the property to be named Citadines Chennai OMR Gateway, with Rattha holding the remaining stake. Ascott will also manage the property for 10 years with an option to renew the contract for another 10 years.

The new property which is targeted to open in 2010, will have about 300 units, the largest number of units among Ascott’s properties in India. The serviced residence is strategically located along Old Mahabalipuram Road, commonly known as OMR or the IT Highway.

Ascott has acquired a 100% stake in an existing residential apartment building in Shenzhen from China Merchants Property Development Limited, one of the largest state-owned real estate developers in China, for RMB 246 million (US$32.3 million). Ascott will convert the residential building into a 240-unit serviced residence to be named Citadines Shenzhen Garden City, which is targeted to open in 2008.

The property is situated in Nanshan district in Shenzhen and located near high-end office towers, major retail, entertainment outlets and shopping malls. The property is also close to Futian Central Business District as well as the Shekou Ferry Terminal.

Ascott has signed a sale and purchase agreement with GBI Gesellschaft für Beteiligungen und Immobilien-Projektwicklung mbH & Co. KG (GBI), a German real estate developer. GBI will develop and sell to Ascott a serviced residence property in Munich for €21.78 million (US$29.3 million).

The 146-unit serviced residence will be completed in the second half of 2009 and named Citadines Munich Arnulfpark. It is located about 20 minutes’ walk from Marienplatz, the epicentre and shopping hub of Munich, and has easy accessibility to the airport and major points of interest in the city.

As Munich is Germany’s leading economic area and a major international trade fair and holiday destination, there is therefore a strong demand in the extended-stay market from business travellers. Citadines Munich Arnulfpark, which enjoys an excellent location, will also be Ascott’s second Citadines-branded property in Germany. The property will enable the Group to tap on economies of scale and enhance the visibility of the Citadines brand in Germany.

Ascott’s existing property in Germany is the 118-unit Citadines Berlin Olivaer Platz in Berlin.

Ascott has secured a contract from Ascott Residence Trust to manage the 43-unit Somerset Gordon Heights, currently known as Shoan Heights, located in Melbourne’s Central Business District for five years, with the option to renew the contract for another five years.

Australia is an important market for the Group which currently operates seven properties in Hobart, Melbourne and Sydney. Melbourne is not only a popular location for meetings, incentive travel, conventions and exhibitions, it is also an attractive destination for major international sporting events. As such, this Australian city is able to attract a steady flow of business and leisure travellers alike.

The five-storey serviced residence is situated at 19-25 Little Bourke Street. It is a short five-minute walk away from the Bourke Street tram stop, and is surrounded by theatres, restaurants, cafés, department stores and government buildings including the State Parliament.

In May 2007, the Ascott team visited Jogjakarta for the symbolic hand over of the school to the provincial officials. During the ceremony the team presented school uniforms and stationery to the students. Food and housekeeping items were also distributed to the local reli-gious associations and villagers living in the vicinity.

Ascott believes in going the extra mile for residents and delivering service from the heart. As an extension of these ‘Heartware’ values, the Group’s properties around the world continually work with local communities to improve lives and build better homes for the less fortunate. Ascott did just that after a massive earthquake devastated the Javanese city of Jogjakarta and helped rebuild the locals’ shattered lives, and a school.

The earthquake on May 2006 took thousands of lives and left many homeless and in need of basic provisions. The town of Bantul was the worst hit area, having lost 4,000 lives, which was about two-third of the total 6,000 casualties. The earthquake which destroyed 90% of Bantul, completely wrecked the school, Sekolah Kalipakem II. As a result, the surviving students were forced to take their lessons and examinations under emergency make-shift tents provided by relief workers.

Learning of the villagers’ plight, Ascott rallied its guests and employees from the various serviced apartments in Indonesia to chip in for the rebuilding effort of the public school in Pundong, a district in Bantul. There was an outpouring of support as people responded generously to the worthy cause. The fund-raising exercise saw a total of Rp 243 million (US$27,800) collected. The money allowed the 80-strong students of Sekolah Kalipakem II to once again continue their education in a safe and conducive environment.