StockNews - Ascott divests Liang Court for S$175 million

The Ascott Group has signed an agreement with Asia Retail Mall Fund (ARMF) 2 to divest its remaining non-core asset in Singapore, Liang Court Shopping Centre for S$175m. This divestment is part of Ascott’s strategy to focus on its core business in the serviced residence industry. The company is expected to net a gain of S$36 million from this divestment for FY06. The sale price is inclusive of the property, plant and equipment as well as the assignment of existing tenants in Liang Cout Shopping centre to ARMF 2.

Ascott's strategy of divesting non-core assets and concentrating its resources into branding should start paying off in the long run as it's brand names which includes Ascott, Somerset and Citadines have gained management contracts in some countries with high growth of serviced residences.