CapitaLand

CapitaLand: The Ascott., the serviced-apt arm of CapitaLand, said it remains committed to growing its China footprint and could list a China-focused REIT to fund its expansion. It continues to like China, and is waiting for good acquisition opportunities in first-tier cities; it also likes the second- and third-tier cities, noting their economies will still grow despite the slowdown in the overall economy. Over the past decade, China has become Ascott's single biggest market. It has ~ 8,000 units at 42 properties located across municipalities including Beijing and Shanghai, as well as smaller cities like Chengdu and Wuhan. In comparison, Ascott's European portfolio has around 5,000 apartments across 45 properties. To fuel its expansion efforts, Ascott could list a yuan-denominated REIT and launch new region-focused private funds to add to its existing Ascott Residence Trust and Ascott China Fund. The size of the possible REIT or funds wasn’t specified. The Ascott China Fund currently has > S$1b in assets, but the group doesn’t think it's big enough yet to be spun off into a REIT. The Ascott didn't provide specific growth targets for China, but said it remains on track to grow its global portfolio to 40k apts by 2015 -- from ~ 30k units now -- mainly through leasing deals and piecemeal asset purchases. The group also declined to specify potential acquisition targets; although it was studying FNN’s hospitality assets, it has no current plans to make bid. Analysts have flagged the suitability of FNN’s hospitality assets, which includes the Fraser Suites brand of serviced apts located in cities like Beijing, Shanghai and Singapore.