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.

About The Ascott Group

The Ascott Group is the largest international serviced residence owner-operator outside the United States with over 18,500 serviced residence units in key cities of Asia Pacific, Europe and the Gulf region.

The Group operates three brands – Ascott, Somerset and Citadines. Its portfolio spans 47 cities in 21 countries including London, Paris, Brussels, Berlin, Barcelona and Russia in Europe; Singapore, Bangkok, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai, Beijing, Hong Kong and Chennai in Asia; Sydney, Melbourne and Auckland in Australia / New Zealand, as well as Dubai in the Gulf region.

The Ascott Group is headquartered in Singapore. It pioneered Asia Pacific's first branded luxury serviced residence in 1984. It also established the world’s first pan-Asian serviced residence real estate investment trust, Ascott Residence Trust in 2006. Today, the Group boasts a 23-year industry track record and serviced residence brands that enjoy recognition worldwide.

The Ascott Group’s achievements have been recognised internationally. Recent awards include Vietnam Economic Times 2006 ‘Golden Dragon Award’, The Asset’s 2006 ‘Triple A Country Award for Best Deal in Singapore’, Travel Weekly China 2006 ‘Best Serviced Residence’, Business Traveller China 2006 ‘Best Serviced Residence Brand in China’, TTG Travel 2006 ‘Best Serviced Residence’, 2006 World Travel Awards, Business Traveller Asia Pacific 2006 ‘Best Serviced Residence Brand’ and ‘Best Serviced Residence’ awards. For a full list of awards, please visit: http://www.the-ascott.com/AboutUs/awards.asp

Listed on the mainboard of the Singapore Exchange, The Ascott Group is the serviced residence arm of CapitaLand Limited, one of the largest listed real estate companies in Asia. Headquartered in Singapore, the multinational company's core businesses in real estate, hospitality and real estate financial services are focused in gateway cities in Asia Pacific, Europe and the Middle East. The company's real estate and hospitality portfolio spans more than 90 cities in 20 countries.