Ascott partners Puri Constructions to manage serviced apartments

NEW DELHI: Singapore-based Ascott Ltd today said it has bagged a contract to manage a serviced apartments project in Gurgaon to be developed by real estate firm Puri Constructions at an investment of Rs 300 crore.

Ascott Ltd, the world's largest international serviced residence owner-operator, said this is the company's second project in Gurgaon and eighth in India comprising over 1,400 apartments. It aims to expand presence in India and is looking for projects in the national capital, Mumbai and Pune.

"We are developing a serviced apartment project comprising 174 units near Dwarka Expressway. We have given the management contract to Ascott Ltd," Puri Constructions Director Arjun Puri told reporters here.

The serviced apartments project, part of 82 acre mixed-use project, is expected to be operational by 2019.

Puri said the total investment of the serviced residence project would be about Rs 300 crore, excluding land, and the same would be met through internal accruals.

The realty firm has decided not to sell these serviced residences and could look at the option of listing this property under Real Estate Investment Truts (REITs) in future, Puri said.

Commenting on the tie-up, Ascott's Chief Corporate Officer Tony Soh said: "We see strong growth potential for Ascott in India. Our strategy for India is to expand in high-growth cities where there is significant demand from international-class serviced residences from expatriates, project teams and business travellers".

Ascott Ltd operates three brands -- Ascott, Citadines and Somerset. It's tie up with Puri Constructions is for Somerset-branded serviced residences.

Last year, it had tied up with realty firm Ireo to manage 'Ascott' branded serviced apartments in Gurgaon.

For expansion in India, Soh said the company is looking for both the options of investments and management contracts. "We have already invested USD 250 million in India," he added.
Globally, Ascott Ltd, a subsidiary of realty firm CapitaLand Ltd, has over 24,000 operating serviced residence units and over 11,000 units are under construction, taking the total to about 36,000 units in over 200 properties.