SINGAPORE (July 26): CapitaLand’s wholly-owned service residence business unit, The Ascott Limited, has entered into a strategic alliance with Filipino developer Cebu Landmasters to manage a total of 1,600 units by 2022.

Under the alliance, both parties will seek properties for CLI to develop into serviced residences to be managed by Ascott.

Ascott and CLI have signed management contracts for their first four properties in the Philippines – namely Citadines properties in Bacolod, Cebu and Davao as well as a lyf branded property in Cebu – to open over the next five years from 2019 to 2021.

The four properties offer over 800 units collectively, and also marks Ascott’s entry to the city of Bacolod.  

Ascott’s latest partnership increases its portfolio in the Philippines to over 4,300 units, inclusive of new units under another management contract that it signed separately with another property owner for Citadines Roces Quezon City, which will open in 2023.

Further, Ascott has signed a memorandum of understanding (MoU) with World Bank Group member International Finance Corporation (IFC) to pioneer a world-first green building certification for serviced residences as part of IFC’s Excellence in Design for Greater Efficiencies (EDGE) system.

Under the MoU, the newly-renovated Ascott Makati in the Philippines will be the first serviced residence to receive this EDGE certification.  

Ascott and IFC will also jointly source for properties to be developed to the certification’s new serviced residence green standards with potential financial support from IFC, as well as management services provided by Ascott.

Commenting on Ascott’s 18-year presence in the Philippines thus far, Daniel Wee, Ascott’s Country General Manager, says the country portfolio has enjoyed an average occupancy rate of about 80%, and is on-track to achieve its target of 6,000 units in the Philippines by 2020.

“Leveraging Ascott’s global network and strong hospitality expertise, as well as CLI’s well-established reputation in the Philippines, the partnership will allow us to gain access to a pipeline of quality projects in the country. This will fast-track our expansion and strengthen Ascott’s leadership position as the largest international hospitality player in the Philippines,” comments Kevin Goh, CEO, The Ascott Limited.

“Having leading industry players choose to partner Ascott speaks volume of the value we bring to our partners. We are confident that Ascott will exceed 80,000 units in 2018 and expand to 160,000 units worldwide by 2023,” he adds.

As at 3:11pm, shares in CapitaLand are trading 5 cents lower at $3.21.