The Ascott Limited (Ascott), CapitaLand’s wholly-owned serviced residence business unit, has signed a joint venture (JV) agreement with India’s leading property developer, RMZ Corp, to develop a 203-unit serviced residence in Bangalore.
Under the agreement, Ascott will hold a 50 percent stake in the JV Company for INR 151.75 million, while RMZ Corp will acquire the remaining stake.
Ascott will manage the new Citadines Galleria Bangalore — its first Citadines apart’hotel and second property in Bangalore — when it opens in 2014.
Mr. Ronald Tay, Chief Investment Officer of Ascott, said, “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.”
The company will also open Somerset Greenways Chennai, its first property in India this year, said Mr. Tay, who manages the company’s business in India.
Located in Yelanhanka, Citadines Galleria Bangalore is part of a mixed development called RMZ Galleria, which includes an office tower and a shopping mall. Featuring a contemporary and vibrant design, the serviced residence will feature studio, one- and two-bedroom apartment units, with facilities including a swimming pool, gymnasium and F&B outlets, said Ascott.
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.”