REAL estate developer CapitaLand has announced its intention to purchase the Somerset Grand Cairnhill serviced residence in Singapore from its associate, Ascott Residence Trust (REIT), for S$359 million (US$283 million).
Situated near Orchard Road, Somerset Grand Cairnhill, which currently offers 146 serviced residence units in studio, one-, two- and three-bedroom formats, will be redeveloped into CapitaLand’s first-ever integrated serviced residence and condominium project.
The revamped property will feature a 20-storey serviced residence tower with 371 units; the rest of the development will comprise high-end residential units.
The serviced residence tower is expected to be sold back to Ascott REIT for S$405 million in 2017, and will operate under a hotel licence – allowing it to accommodate both short- and long-term guests.
Meanwhile, Ascott announced that it would be splashing part of the S$283.6 million earned from divesting The Ascott Raffles Place and Ascott Guangzhou to Ascott REIT, on investment opportunities in Europe.
