Ascott has acquired a 100% stake in an existing residential apartment building in Shenzhen from China Merchants Property Development Limited, one of the largest state-owned real estate developers in China, for RMB 246 million (US$32.3 million). Ascott will convert the residential building into a 240-unit serviced residence to be named Citadines Shenzhen Garden City, which is targeted to open in 2008.

The property is situated in Nanshan district in Shenzhen and located near high-end office towers, major retail, entertainment outlets and shopping malls. The property is also close to Futian Central Business District as well as the Shekou Ferry Terminal.