Rituparna Chatterjee – Mumbai
The Ascott Limited, an international serviced residence owner-operator, is aggressively expanding across Tier I and Tier II cities in India. Presently, Ascott has two properties in the country – the 96-unit Citadines Richmond Bangalore and 187-unit Somerset Greenways Chennai. Four more properties with over 1,000 units are scheduled to open in Ahmedabad, Bengaluru, Chennai and Hyderabad over the next three to four years. The total investment for the four upcoming properties and the two operational ones are pegged at more than US$ 250 million. In addition, Ascott has also secured a management contract from Ireo to manage Ascott Ireo City Gurgaon and is also planning to extend their footprint to Mumbai and Delhi. The properties in Chennai, Hyderabad and Ahmedabad will be company owned, while the Bengaluru property will be a 50-50 joint venture with RMZ Corp. All the properties will be managed by Ascott.
Ajit Koushik, area general manager – India, The Ascott Limited stated, “We are positive that the booming Indian realty market in key high growth cities coupled with our expertise in operating these properties shall fetch us a good return over the next few years. We will manage the properties and bring them up to a stable yield and eventually we may explore the opportunity of divesting our properties to Ascott Residence Trust or third party owners.” The company also intends to leverage on its global network of contracted corporate to cross-market their properties.
On the future growth of this sector in India, Koushik opined, “India is a key market with a huge demand for serviced apartments and evidently there is a limited supply of this. Tier I and Tier II cities with large and mid-sized corporates from India and abroad are ideal destinations to develop serviced apartments.”