Stock News: Ascott Group to invest 50 mln usd!

The Ascott Group Ltd said it will invest about 50 mln usd in four new serviced residence projects in China, part of plans to expand in that market. "Ascott currently has 12 properties with about 2,600 units in six cities in China. With the addition of these four new Citadines properties, we will enhance our position as the largest international serviced residence owner-operator in China with more than 3,000 units in 16 properties," said Ascott CEO Cameron Ong. Ascott has signed a management contract with Shaanxi New Trend Real Estate Co Ltd to manage Citadines Xi'an Central for a period of 10 years, with an option to renew the contract for another 10 years. The property is a 133-unit serviced residence in Beilin District, Xi'an and is targeted to open in the second half of the year. Ascott also entered into a binding provisional sale and purchase agreement for a 36-unit serviced residence which will be refurbished and is targeted to resume operations in the second half. Ascott will be investing 26. 5 mln usd in the project. The serviced apartment operator also acquired an 80 pct stake in the 167-unit Citadines Suzhou Xinghai from Suzhou Chong Rui New Century Real Estate Development Co Ltd. Ascott's total investment including acquisition cost in the project is 10 mln usd and is also targeted to open in the second half. Ascott also bought a land in Suzhou Industrial Park to build, operate and manage the 250-unit Citadines Suzhou, Lejia. The property is targeted to open in the second half of 2008 and Ascott's total investment in the project is 10. 8 mln usd.