ANOTHER ASCOTT FIRST IN INDIA

2008-05-12 09:52:30 - First international serviced residence company to invest in Ahmedabad

Singapore, 12 May 2008 - The Ascott Group (www.theascottgroup.com/) has acquired its first serviced residence in Ahmedabad in the state of Gujarat in West India. The investment is a joint venture with The Rattha Group (Rattha), a company in the field of exports, infrastructure development and leasing. Ascott has invested INR 257.2 million (approximately S$9.1 million) for the project and will take a 40% stake in the joint venture, with Rattha holding the remaining.
Ascott is the first international serviced residence operator to enter Ahmedabad. The 220-unit serviced residence will be called Citadines Ahmedabad Parimal Garden. With the latest addition, Ascott's portfolio in India grows to 1,398 units across six properties which are currently under development.
Ms Jennie Chua, Ascott's President & CEO said: 'Citadines Ahmedabad Parimal Garden marks our entry into West India and extends our footprint beyond the southern cities of Bangalore, Chennai and Hyderabad. With close to 10 Special Economic Zones approved in Ahmedabad, foreign direct investment will increase and demand for serviced residences in this city will grow.'
She added: 'Ahmedabad has seen an influx of leading multinational companies like Nokia, Microsoft and Volvo, and is continuing to attract more interest from the pharmaceutical, chemical and information technology industries. However, there is a shortage of quality accommodation. Ascott's timely entry into Ahmedabad will bridge the gap in accommodation choices for business travellers.'
Citadines Ahmedabad Parimal Garden is located in the heart of the central business district of Ahmedabad, which is becoming a hub of modern malls, multiplexes, educational institutions and offices. The property is opposite Parimal Garden, one of the green lungs in the city. It is also close to major malls and restaurants. Citadines Ahmedabad Parimal Garden is slated to open in the first half of 2011.
Besides Citadines Ahmedabad Parimal Garden, Ascott's other serviced residences in India are Somerset Whitefield in Bangalore; Somerset Greenways, Citadines Boulevard and Citadines OMR Gateway in Chennai; and Citadines Hitec City in Hyderabad.
This investment is not expected to have any material impact on the net tangible assets and earnings per share of The Ascott Group Limited for the current financial year.