The Ascott Limited, CapitaLand’s service apartment unit, intends to redeploy capital worth S$1 billion into new investments in 2011.
Ascott is seeking to strengthen its market leadership position in Asia, said Lim Ming Yan, Chief Executive of Ascott. The group also plans to expand in Europe, where there are distressed assets being offered for sale.
The company has cash on hand, following the sale of 28 properties for S$969.6 million to its listed unit, Ascott Residence Trust (ART) in August 2010.
“2011 will be an exciting year for us. We are looking at recycling the cash we got from injecting properties into ART last year into China, India, Singapore and Europe,” said Mr. Lim.
Ascott’s long-term target is to expand its global portfolio to 40,000 apartments by 2015. It now has over 27,000 units either in the pipeline or already in operation.
Ascott is set to open 12 new properties this year and intends to sign another 12 new management contracts and / or invest in new properties this year, he said.
To grow in Asia, the company is eyeing India, China and selected Southeast Asian cities like Manila, Jakarta and Kuala Lumpur.
China is likely to be a fast-growing market for Ascott, which now has more than 6,300 units; it plans to bring the number to about 12,000 units by 2015.
Ascott is also optimistic about Singapore, where it operates around 900 apartments. The group will continue searching for suitable sites to expand its market share, said Mr. Lim.
In Europe, where the group has over 5,000 apartments, its target is to grow its European portfolio to over 7,000 apartments by 2015.
“I think the current situation in Europe provides us with opportunities,” said Mr. Lim, adding that the region offers good bargains as it is still suffering from the economic crisis.