Ascott to create a Reit in Malaysia

news source :-
Malaysia Business Times


The Ascott Ltd, the world’s largest serviced residence owner-operator, may group its assets in Malaysia and float them on the local bourse.

It may also inject the assets into Ascott Residence Trust (ART), a real estate investment trust (REIT) listed in Singapore to expand the REIT to generate more income for shareholders, said a key official.

“We are toying with several options now. We are still looking at a REIT in Malaysia but the current market is not conducive for us to launch one now,” said Ascott regional general manager for Singapore and Malaysia, Tan Boon Khai.

Singapore-based Ascott, the hospitality arm of CapitaLand Ltd, is the largest international serviced residence operator in Malaysia.

It currently owns and manages Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon and Somerset Ampang.

It also manages Marc Service Suites and Tiffani by i-Zen for their owners.

Over the next five years, Ascott will manage five more properties for third parties, which are under construction. They are Ascott Sentral Kuala Lumpur, Citadines Uplands Kuching, Citadines D’Pulze Cyberjaya, Somerset Puteri Harbour and Somerset Uptown Damansara.

“We were looking at a REIT in Malaysia a few years ago but then crisis hit in 2009. We are bullish on the market but we need to identify our assets. A REIT has to be worth over RM1 billion,” Tan told Business Times.

“Ascott is also expanding ART. If needed, we could also inject the assets in Malaysia into the REIT. There is nothing on the table yet,” he said.

ART is world’s first pan-Asian serviced residence
real estate investment trust, which was listed in March 2006.
The REIT has more than tripled to about S$2.7 billion (RM6.6 billion) since its listing.

It has a portfolio of more than 60 properties in Asia Pacific and Europe.

ART is managed by Ascott Residence Trust Management Ltd, a wholly-owned unit of The Ascott and an indirect wholly-owned subsidiary of CapitaLand.

Its serviced residences are operated under the Ascott, Citadines and Somerset brands and are located in key gateway cities like Beijing, Shanghai, Singapore, Tokyo, London, Paris, Ho Chi Minh City, Jakarta, Manila, Melbourne and Perth.