SINGAPORE - Ascott Residence Trust (Ascott Reit) will join City Developments Limited (CDL) and CapitaLand Limited to redevelop the Singapore’s Liang Court site into an integrated development.
With revitalisation plans in place for the Singapore River and Clarke Quay precinct and the proposed construction of a new integrated development, it is an opportune time to recycle our capital into redeveloping our ageing property into a new Somerset serviced residence and refresh the land’s lease to 99 years.– Bob Tan, Ascott Residence Trust Management Limited’s chairman
Ascott Reit will use net proceeds of S$163.3 million (US$119.8m) from divestment to redevelop retained gross floor area (GFA) into a new Somerset serviced residence with a hotel licence and refreshed lease of 99 years.
Upon completion, the estimated project development expenditure of the new property is approximately S$300 million (US$220m).
Slated to open in second half 2024, the Somerset serviced residence will offer 192 units. It will be part of the proposed integrated development that will also comprise two residential towers, a commercial component and a hotel, subject to approval from the relevant authorities.
With a hotel licence, the Somerset property will also have the flexibility to cater to travellers on short stays.
Upon completion, CDL and CapitaLand’s 50:50 joint venture entities will own the residential and commercial components while Ascott Reit will own the Somerset serviced residence.
CDL Hospitality Trusts will own the hotel under a forward purchase agreement with CDL.
In line with the government’s plans to enhance the vibrancy of the precinct, the consortium also plans to rejuvenate the river promenade flanking the integrated development, increasing footfall and improve pedestrian accessibility along the Singapore River.
Bob Tan, Ascott Residence Trust Management Limited’s chairman, said, “With revitalisation plans in place for the Singapore River and Clarke Quay precinct and the proposed construction of a new integrated development, it is an opportune time to recycle our capital into redeveloping our ageing property into a new Somerset serviced residence and refresh the land’s lease to 99 years.”