ASCOTT SELLS HOTEL ASIA FOR S$147 MILLION WITH NET GAIN OF S$22.2 MILLION

The Ascott Group (Ascott) has signed a conditional sale and purchase agreement with an unrelated party to divest Hotel Asia located at 37 Scotts Road in Singapore for a total cash consideration of S$147 million. The amount represents a 41% increase over the price of S$104 million when it acquired the property in July 2006. Ascott will realise an estimated net gain of S$22.2 million from the divestment.

Mr Cameron Ong, Ascott’s Managing Director and CEO said: “We have always kept an open mind about Hotel Asia and time-to-market is key to our expansion. Ascott was approached by the buyer and the offer presented to us is very attractive and timely given the robust uptrend in the Singapore real estate market. The divestment gain of S$22.2 million is significant in view of the short period of time since the acquisition. We remain bullish on the Singapore market and will continue to look for potential sites to expand our presence here to achieve our target of 1,600 serviced residence units by 2010.”

In July 2006, Ascott also announced the acquisition of Asia Insurance Building located at Finlayson Green within Singapore’s Central Business District. The building is currently being converted into the Group’s flagship serviced residence property in Singapore to be named Ascott Raffles Place. The property is expected to be ready by the first half of 2008 and will have 152 units when completed.

Ascott’s portfolio in Singapore stands at 11 properties with 1,054 units after the divestment of Hotel Asia.