CapitaLand's Ascott to triple US portfolio with US$33.7m acquisition

CAPITALAND'S serviced residence arm The Ascott is tripling the size of its US portfolio by buying an 80 per cent stake in US-based Synergy Global Housing for US$33.7 million.

Synergy, which has had a cross-selling relationship with Ascott since 2013, will increase Ascott's US portfolio to about 3,000 units from the current size of more than 1,000 units. Globally, Ascott's portfolio will have almost 70,000 units after the transaction.

The net asset value of the 80 per cent stake was US$4.7 million as at June 30. Completion is expected in the third quarter of 2017.

Ascott chief executive Lee Chee Koon said the Synergy acquisition will give the company direct access to corporate customers in the US and expand its global cross-selling network.

"Ascott is gearing up to transform our business to become an even more active and dominant player in the hospitality eco-system," Mr Lee said. "As we move up the value chain to acquire strong operating platforms globally, we are getting closer to our customers, understanding their needs better and thereby improving our service and product offerings to them."