Ascott to acquire London property for £159 million

CapitaLand’s wholly owned serviced residence business unit, The Ascott Ltd., has signed an agreement to acquire the 230-unit Cavendish in London for £158.8 million (US$247 million).

Singapore-based Ascott will start managing the hotel in the fourth quarter of 2012 and subsequently transform it into a luxurious serviced residence under the premier Ascott The Residence brand. The hotel will be renamed Ascott St James London.

“London is one of the strongest and most resilient hospitality markets where demand from business and leisure travellers for international-class serviced residences continues to grow. This is an attractive opportunity to acquire a quality operating property, which is strategically located in the prestigious Mayfair area. We see the potential to transform this property into one of the best luxury serviced residences in London. The acquisition of The Cavendish London is in line with our articulated strategy to seek investment opportunities in key growth cities in Asia and Europe,” said Ascott CEO Chong Kee Hiong.

Currently in London, Ascott operates Ascott Mayfair, Citadines Prestige Trafalgar Square, Citadines Prestige Holborn-Covent Garden, Citadines Prestige South Kensington, Citadines Barbican and St Marks serviced residence.