Ascott Jointly Acquires Freehold Serviced Residence for SGD192 Million in Sydney

Singapore-based CapitaLand’s wholly-owned lodging business unit, The Ascott Limited (“Ascott”) has acquired a freehold serviced residence in North Sydney central business district for SGD192 million through a 50/50 joint venture between Qatar Investment Authority and the Ascott Serviced Residence Global Fund (“ASRGF”). The serviced residence, to be named Citadines Walker North Sydney, will be part of a 48-storey mixed-use development that includes office and retail units. The 252-unit property will offer facilities including a restaurant and gymnasium. The development is set to be the tallest tower in North Sydney when it is completed in 2021. In addition, Ascott has also signed franchise and management contracts for 13 more properties globally at the grand opening of La Clef Champs-Élysées Paris in France, one of the assets invested by ASRGF under The Crest Collection. These, along with the acquisition in Australia, will bring the company’s asset value to SGD10 billion with an addition of over 2,200 units. Ascott’s global portfolio comprises of more than 66,000 operating units and nearly 46,000 units in the pipeline, representing a total of more than 112,000 units in over 700 properties.

AXA IM to Acquire Site in Sapporo, Japan for JPY25 Billion

France-based AXA Investment Managers – Real Assets (“AXA IM”) has agreed on the JPY25 billion transaction of a site in Sapporo, the capital and largest city on Hokkaido and Japan’s fifth largest city. The 6,691-square-metre plot is acquired on behalf of Japan-based Yamaha Corporation. Currently, the site is slated for a single asset development offering a mix of office space and a hotel development, in which the construction is scheduled for completion in 2024. The deal represents AXA IM third investment in the city of Sapporo, which comes shortly after its forward purchase of a hotel development in Hiroshima, Japan, adding to its EUR4.4 billion of assets under management across the Asia Pacific region.

Auckland Airport Completes International Terminal Expansion

Auckland Airport has completed a five-year project to upgrade and expand its 36,000-square-metres international terminal departure area. The purpose of the expansion is to increase the airport’s capacity to 40 million passengers a year by 2040 from its current 16 million, as well as enhancing the passenger experience. The expanded area will comprise a reconfigured landside farewell area, a new passenger lounge, a retail hub, and an expanded security screening and processing area. Some of the key features of the refurbished area include upgraded bathroom facilities, new charging points, as well as two hours of free Wi-Fi for all visitors and extended hours for members of the airport’s loyalty programme Strata Club. There are 14 new food and beverage outlets which include Vietnamese, Italian and Chinese cuisine. In addition, 32 new retail outlets have also been added to the area which include Auckland clothing brands such as Icebreaker and All Blacks Adidas outlet, and international brands such as Kate Spade and Michael Kors. The upgrading is part of the airport’s 30-year vision which include the future construction of a new combined international and domestic terminal, development of a second runway by 2025, and extension of the same runway after 2044.

GST Rate Cut on Hotel Tariffs Brings Cheer to the Indian Hospitality Sector

The Goods and Services Tax (GST) Council has provided a much-needed breather to the Indian hospitality sector by cutting taxes and changing the tax slabs on hotel accommodation. Hotels with room tariffs of up to INR1,000 per night will now be exempt from GST, while rooms with tariffs of INR1,001-7,500 per night will be taxed at 12%. Meanwhile, rooms with tariff above INR7,500 per night will now attract a GST of 18% instead of the previous rate at 28%. The GST rationalization is expected to fuel demand and result in growth of average rates.

Beijing Daxing International Airport Declares Formal Opening

Beijing Daxing International Airport was formally declared opened on 25 September 2019.  Located in the south of Beijing, the capital city of China, it is approximately 46 kilometres from the city center and 67 kilometres from Beijing Capital International Airport. The phoenix-shaped airport features the world’s biggest single terminal building measuring over 1.4 million square metres. Emerging as the world’s largest integrated transportation hub, the airport boasts a sprawling network of high-speed and inter-city trains, subways and public buses. Notably, it combines new technologies including infrared temperature gauge, facial recognition and sensors to provide passengers with safe, smooth, convenient and pleasant transportation service. The new airport can not only help to relieve the current transportation pressure on Beijing Capital International Airport, but also accommodate the increasing number of inbound and outbound travellers. Going forward, the new airport is expected to handle approximately 45 million and 72 million passengers per year by 2020 and 2025, respectively, eventually reaching 100 million in the long term.

Absolute Share Price Performance, as on 27 September 2019