The Ascott group, a leading international serviced residence company with about 14,000 serviced residence units spread across Europe and Asia-Pacific, has set its sights on India.
The group plans to set shop in India to tap the growing population of expatriates located in the country.
It has already studied the Indian market and the first serviced apartment property is likely to be set up before the end of the fiscal year 2004-05.
"We are looking at Mumbai, Bangalore and Delhi including Gurgaon," said Eugene Lai, chief executive officer of Ascott group. The deal may be worked out within the next six months.
The group is in an advanced stage of talks with an Indian property developer for the project, but Lai refused the name the developer. It could be a greenfield project where the property has not yet been fully developed. Even though Lai declined to confirm, indications are that the property could be located in Mumbai.
Globally, Ascott holds equity stakes in 50 per cent of its 116 projects spanned over 35 cities in 16 countries. It manages the rest of the properties on a fee. To start with, it might follow the management contract model in India.
The group's flagship, the Ascott luxury serviced residence brand, targets the top end of the corporate world, while Somerset brand offers stylish, contemporary living for senior management executives. Its economy brand is Oakford in Australia and Citadines in Europe. The group plans to bring the Somerset brand to India.
"Indian economy is a fantastic growth story. The foreign institutional investors are closely watching the country. This is an opportunity for us," said Cameron Ong, deputy chief executive officer (operations) of the Ascott group.
The service apartments of the group are generally located at city centres and target expatriates who are being relocated.
A relatively new concept in India, the service apartments offer the convenience of home with all facilities but the cost of an occupant works out cheaper than a hotel accommodation.
Normally, expatriates who are being relocated and senior corporate executives on transfer check-in at serviced apartments till such time they find their own accommodation. The Tata group has recently made its foray into this segment.
Ascott is, probably, the largest service apartment company outside the US. In Europe it is present in London, Paris, Brussels, Berlin and Barcelona. In Asia Ascott is present in Singapore, Bangkok, Hanoi, Kuala Lumpur, Tokyo, Shanghai and Beijing.
It is also present in Sydney, Melbourne and Auckland in Australia and New Zealand besides Dubai in the Middle-East.
Headquartered in Singapore, The Ascott Group pioneered Asia-Pacific's first branded luxury serviced residence in 1984. Listed on Singapore Exchange, Ascott is the serviced residence arm of CapitaLand Ltd, one of Asia's largest listed property companies.
