2014 Review
According to EIU, Belgium’s GDP growth picked up from 0.3% in 2013 to 0.9% in 2014. The growth
in the economy was mainly driven by household consumption and business investment, a result of
ongoing budget consolidation efforts by the government.
Brussels, the sixth most important business city in Europe, has well-positioned itself as a top
governmental destination in the world. In 2014, approximately 75% of business tourism was a result
of the presence of the European Institutions. The leisure segment held up comparatively well over the
past year as the city welcomed an increasing number of travellers from neighbouring European
countries as well as emerging economies in Asia and South America.
Citadines Sainte-Catherine Brussels and Citadines Toison d’Or Brussels received stronger demand
for the refurbished apartments, which were completed in 4Q 2012 and 1Q 2014 respectively. Overall
RevPAU increased by 14% from S$87 in 2013 to S$99 in 2014, clearly demonstrating the success of
the AEI.
2015 Outlook
According to EIU, Belgium’s economy is expected to grow by 1.2% in 2015. Furthermore, with annual
structural budget improvements of at least 0.5% of GDP in the coming years, the government plans
to reach a balanced budget in 2018. This should continue to spur economic activities, with further
support from growth in exports. As planned, consolidation measures tilted towards expenditure
restraint would make room for lower tax burden, especially on labour. A tax shift from labour to
consumption and capital gains would also reduce labour costs and increase competitiveness. With
these favourable economic factors in place, we expect our newly refurbished properties in Belgium
to achieve stronger operating performance in 2015.
China
10 Properties 1,947 Units
S$’million
Total Revenue (2014)
55.8
Total Gross Profit (2014)
15.9
Valuation as at 31 December 2014
803.6
Ascott Reit owns ten serviced residences across China in Beijing, Dalian, Guangzhou, Shanghai,
Shenyang, Suzhou, Tianjin, Wuhan and Xi’an. The 221-unit Somerset Grand Fortune Garden Property
Beijing (of which Ascott Reit owns 81 units that are currently under strata-sale) is located in the
Lufthansa Commercial Area; the 180-unit Citadines Biyun Shanghai is located within the Jinqiao
Export Processing Zone; the 168-unit Somerset Xu Hui Shanghai is in the exclusive Xu Hui residential
district; the 185-unit Somerset Olympic Tower Property Tianjin is situated in the city’s prime
commercial, entertainment and residential area; the 207-unit Ascott Guangzhou lies within the Tianhe
Central Business District; the 270-unit Somerset Heping Shenyang lies in the heart of Shenyang’s
main commercial and shopping district; the 167-unit Citadines Xinghai Suzhou is located within the
West Jinji Lake Central Business District of the Suzhou Industrial Park; the 195-unit Somerset Grand
Central Dalian is situated in the city’s development zone; the 251-unit Citadines Gaoxin Xi’an is
located in the new high-tech zone of Xi’an; and our 249-unit Citadines Zhuankou Wuhan is situated
in the economic development district.
The average length of stay at our properties in China is about seven months.
Pursuing Growth | 67
