Ascott enters joint venture to develop second serviced residence in Bangalore

Ascott enters joint venture to develop second serviced residence in Bangalore

CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has entered into a joint venture with RMZ Corp, one of India’s leading real estate developers, to develop a 203-unit serviced residence in Bangalore. Ascott will acquire a 50% stake in the joint venture company for INR 151.75 million (approximately S$4.36 million) while RMZ Corp will hold the remaining stake. The new Citadines Galleria Bangalore will be Ascott’s first Citadines apart’hotel and second property in Bangalore. Ascott will manage the property when it opens in 2014.

Mr Ronald Tay, Ascott’s Chief Investment Officer who oversees the company’s business in India, said: “As one of the key growth engines of Asia, India continues to attract foreign investments due to its huge domestic market and sizeable educated workforce. With increasing business travel into India and inter-city travel, demand for quality accommodation will grow. Ascott will open our first property in India, Somerset Greenways Chennai, this year. Our partnership with RMZ Corp will allow us to leverage on each other’s strong brand reputation and expertise to further scale up Ascott’s presence in India. With Citadines Galleria Bangalore, Ascott will have close to 1,600 apartment units across seven properties in Bangalore, Ahmedabad, Chennai and Hyderabad. Besides expanding our presence in these cities, we will continue to seek opportunities for growth in other cities such as Mumbai, New Delhi and Pune.”

Citadines Galleria Bangalore will be located in Yelanhanka, which is easily accessible by major highways and has excellent connectivity to the Bangalore International Airport and Central Business District. The property is also close to industrial parks such as the Kirloskar Business Park and Manyata Tech Park. Citadines Galleria Bangalore will be part of a mixed development known as RMZ Galleria that includes a shopping mall and an office tower. Awardwinning DP Architects from Singapore has been appointed as the architectural consultant for the entire development. Featuring vibrant and contemporary design, the serviced residence will offer studio, one- and twobedroom apartment units and facilities such as a gymnasium, swimming pool and food and beverage outlets.

Mr Manoj Menda, Managing Director of RMZ Corp, said: “We are pleased to partner Ascott as it is the world’s largest international serviced residence owner-operator. With 27 years of experience in managing award-winning serviced residences globally, we are confident that Ascott will be able to enhance the value of our development and increase its appeal to discerning international travellers. Besides staying in a world-class serviced residence, guests of Citadines Galleria Bangalore will enjoy a unique shopping experience at the RMZ Galleria which will offer over 200 stores, a nine-screen cinema and a hypermarket.”