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Ascott Residence Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
2015 Review
According to EIU, Belgium’s GDP grew 1.3% in 2015.
Brussels, the capital of Belgium and the European
Union (EU), houses the EU’s headquarters as well as
several other major international organisations such as
the North Atlantic Treaty Organisation (NATO). In 2015,
approximately 75% of business tourism was a result
of the presence of the European Institutions in 2015.
On the other hand, the leisure tourism segment held
up comparatively well in 2015 as the city welcomed
an increasing number of travellers from neighbouring
European countries as well as emerging economies in
Asia and South America. Brussels continues to remain
an attractive destination for business and leisure.
In 2015, both properties performed above theminimum
guaranteed income and exceeded the hurdle amount,
clearly demonstrating the success of the AEI which
were completed in 4Q 2012 and 1Q 2014 respectively.
Overall RevPAU from both properties remained stable
at S$99 in 2015, unchanged from 2014.
2016 Outlook
According to EIU, Belgium’s economy is expected
to grow at a modest rate of 1.5% in 2016. According
to OECD, improvement in private investment will be
underpinned by favourable financial conditions and
export growth is expected to benefit from stronger
growth in Europe. However, gains in the external sector
will likely be offset by slower private consumption
going forward.
The construction of new headquarters for the NATO is
currently underway and it is expected to be completed
in 2016. The 41-hectare campus will include a highly
secure data centre and 245,000 square metres of
office, conference and recreational space. The growth
of existing EU institutions, such as the new NATO
headquarters, should further increase corporate
and MICE demand. Furthermore, the number of
overnight visitors in Brussels is expected to grow as
the government aims for an additional three million
overnight stays by foreign tourists to reach 10 million
in 2020.
Gross Rental Income
(S$’000)
Agreed
Property Value
at Acquisition
(S$’million)
FY 2015 FY 2014
Citadines Sainte-Catherine Brussels
6,121
6,382
26.7
Citadines Toison d'Or Brussels
5,760
5,599
23.5
Revenue Per Available Unit (S$)
FY 2015
FY 2014
Citadines Sainte-Catherine Brussels
98
102
Citadines Toison d'Or Brussels
100
97
