CapitaLand Investment‘s wholly owned lodging unit The Ascott Ltd. has entered a deal with Vietnamese real estate developer Sun Group to manage Vietnam’s largest serviced residence development, the Singapore-listed property investor said in a filing to SGX Tuesday.
Ascott will manage 1,905 units across three serviced residence brands within Sun Group’s Tay Ho View Complex in Hanoi, which is expected to be a new landmark property in the waterfront Tay Ho district, the statement said.
The brands will include The Crest Collection brand, currently only available in France, aimed at a “unique luxury experience,” Ascott said, adding it will also use the Ascott The Residence and its Citadines Apart’hotel brands. The three serviced residences are expected to open in phases from the first quarter of 2023, Ascott said.
Ascott The Residence will offer 1,167 units, including suites, studio, one- to four-bedroom apartments and duplex units, while Citadines Apart’hotel will have 710 units, including studios, one-to-four-bedroom apartments and duplex units, the filing said. The Crest Collections will offer 28 exclusive units, across three- and four-bedroom duplex apartments, the statement said.
“Forming strategic collaborations with leading industry players continues to be a key growth strategy for Ascott. It provides us with accelerated access to a pipeline of quality projects to grow our global portfolio and our recurring fee income as they open and stabilise. This is line in with CLI’s asset-light strategy,” Kevin Goh, CapitaLand Investment’s CEO for lodging, said in the statement.
“The project will be a flagship showcase of Ascott’s hospitality capabilities,” Goh added.
In addition to the serviced residences, the Tay Ho View Complex will have commercial and retail elements, as well as proximity to embassies, businesses, restaurants and retail options, the statement said.
So far this year, Ascott has reached a record of more than 2,800 new units in Vietnam, more than its full-year signings in the country in previous years, the statement said.
Ascott’s portfolio in Vietnam holds around 9,200 lodging units in over 30 properties across 12 cities, the statement said.
In June, Ascott’s private fund, Ascott Serviced Residence Global Fund, acquired the 364-unit Somerset Metropolitan West Hanoi, which is expected to open in 2024, the statement said.