Ascott, Rattha acquire properties in Chennai, B'lore

The Singapore-headquartered Ascott group and the Chennai-based Rattha group have announced that they have secured their second and third properties in Chennai and Bangalore to develop 'serviced residences'.

The two groups signed an agreement in August to acquire properties and develop seven 'serviced residences' in India at a total project investment of about Rs 1,000 crore over four years.

Their first serviced residence, Somerset Greenways in Chennai, which will have 210 units, was announced in August.

Ascott will hold a 40 per cent equity stake while Rattha will hold a majority stake of 60 per cent in the two new properties, which will be christened Somerset Whitefield, Bangalore, and Citadines Chennai Boulevard.

Ascott will also manage the properties for a period of 10 years with an option to renew the management contracts for another 10 years, said a company statement.

Cameron Ong, managing director and chief executive officer, Ascott Group, said: "The south of India has been witnessing strong growth in foreign investments. Given the shortage of international class accommodation here, the market has tremendous capacity to absorb supply. Ascott is the first international serviced residence operator to enter Chennai and Bangalore. We're leveraging our international brand name to build a strong foothold in the country's serviced residence business."

The Bangalore property, with 230 units, is expected to be ready during the second half of 2008.

The Chennai property, located along Mount Poonamelle Road, a main truck road leading to Sriperumbudur industrial area, will have 220 units and is expected to be ready by the first half of 2008.

Both the properties may also have facilities such as swimming pool, gymnasium, tennis court and restaurant.