The Hindu Business Line : Ascott, Rattha Group tie up to develop 7 residential properties

The Singapore-based Ascott Group has signed a master development agreement with the Chennai-based Rs 400-crore Rattha Group to acquire and develop seven serviced residential properties by 2010.

Mr Cameron Ong, Managing Director and CEO, Ascott Group, said that the total investment in the first phase would be $220 million. The projects are coming up in Chennai, Bangalore, Hyderabad and Mumbai.

Under this agreement, Ascott will manage the properties for a period of 10 years with an option to renew the management contract for another 10 years.

As a part of this master development agreement the two companies have also signed a joint venture agreement to "acquire the first serviced residence in Chennai." In this project, the Rattha Group will hold 60 per cent and the Ascott Group will have 40 per cent. Each of the projects would be a separate joint venture, Mr Ong said.

The Chennai project, located in MRC Nagar, would have a built up area of two-lakh sq ft and is estimated to cost $42 million, Mr H.S. Rattha, CEO, The Rattha Group, said. The project is likely to be ready in the first half of 2008. It will have 210 units comprising studio, one and two bedroom units.

Ascott operates three brands — Ascott, Somerset and Citadines — in 44 cities in 18 countries. The company plans to introduce Somerset and Citadines in India. The Chennai project will be under the Somerset brand.

Mr Rattha said that the Rattha Group has acquired land banks in cities to facilitate the expansion in the hospitality sector.

The Rattha Group has been in garment exports for almost two decades and has diversified into infrastructure. It has delivered two million sq ft of commercial space, and has four million sq ft of commercial space in the pipeline.

The Ascott Group is the serviced residences arm of CapitaLand, a part of Temasek Holdings. The Group is the largest international serviced residence owner-operator outside the US with close to 17,000 serviced residence units in Asia Pacific, Europe and the Gulf Region.

Speaking at the function, Mr Gan Kim Yong, Minister of State of Education and Manpower, Singapore, said that Singapore has become the third largest investor in India. India was Singapore's 13th largest trading partner in the world and the first in South Asia.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page