Frasers buys Beijing project from Sino-Ocean for US$130m

Singapore-based serviced residence management firm Frasers Hospitality has bought a luxury residential project in Beijing from Hong Kong listing candidate Sino-Ocean Land Holdings for US$130 million as part of efforts to expand its leasing portfolio to 3,000 units by the end of next year.

'This is our first acquisition in Beijing,' Frasers Hospitality chief executive Choe Peng Sum said. Over the next 12 to 18 months, Frasers aimed to extend its reach to 10 mainland cities including Beijing, Shanghai, Nanjing and Chengdu, and Hong Kong.

Without giving an estimated investment, Mr Choe said Frasers was looking at various forms of tie-ups such as third-party management, co-investment and sole acquisition.

Frasers is now managing 500 units in two projects in Shenzhen, Fraser Place Shekou and Fraser Residence Futian. The newly acquired Beijing project to be named Fraser Suites Beijing, comprises 357 luxury apartments and is scheduled to be completed in the first quarter of next year. It is located in Guanghua Lu, Beijing's business centre.

The firm also signed a management contract recently with US-based fund Carlyle Group on managing the serviced apartment complex Frasers Residence Beijing.

The project is scheduled to open in November. 'Most of our new properties will be opened either before the Beijing Olympics or the World Expo 2010 in Shanghai as we anticipate strong demand amid the booming economy,' Mr Choe said.