Realty Digest: Ascott expands hospitality footprint; Capital World to raise $13.5m

Source: The Ascott Limited (Citadines Pearl Hoi An (Opening in 2019, and one of the 26 properties signed on July 15, 2019)

Singapore-based hospitality player, The Ascott Limited (Ascott), is embarking on its latest global expansion plans while Malaysia-focused Capital World Limited is raising $13.5 million from private investors for an ongoing project.

Ascott expands global hospitality footprint

Singapore-based hospitality player, The Ascott Limited (Ascott), is expanding its global footprint by signing contracts for 26 properties with 6,000 units across 22 cities and 11 countries. The majority of these properties are located in the Asia-Pacific region.

Ascott CEO Kevin Goh said, in a statement, “we are fast-expanding Ascott’s global network of properties as we continue to pursue an asset-light business model to boost our recurring fee income. While we achieve strong momentum in expanding our global lodging business through strategic alliances, management contracts, franchise, and leases, we are also accelerating the number of new property openings.”

Ascott has over 40 properties with more than 8,000 units, an increase of over 40 per cent in units compared to the same period in 2018.

Capital World seeks to raise $13.5m for ongoing project

Malaysia-focused and Singapore-listed property developer Capital World Limited (CWL) has entered into a term sheet with two individual private investors, Yuan Zhiwei (Yuan) and Chng Chor Tong (Chng), to raise S$18.30 million ($13.47 million) for the development of the ongoing Capital City Project.

The proceeds will also be used to repay existing loans, and for working capital purposes.

Capital City is an integrated property project comprising a retail mall, indoor theme park, hotel, and serviced suites and serviced apartments along Jalan Tampoi, Johor Bahru, Malaysia.

Upon completion of the proposed subscription issue, Yuan will become a controlling shareholder, holding 28.11 per cent stake in the enlarged share capital of CWL. Chng will hold 4.84 per cent of the enlarged share capital.

Yuan is currently a director and shareholder of Guizhou Honki Real Estate Development Company Ltd (Guizhou Honki). Founded in 1983, Guizhou Honki is a real estate company based in Guizhou, China with presence in other provinces and cities such as Guangzhou and Shenzhen.