Ascott has signed a sale and purchase agreement with GBI Gesellschaft für Beteiligungen und Immobilien-Projektwicklung mbH & Co. KG (GBI), a German real estate developer. GBI will develop and sell to Ascott a serviced residence property in Munich for €21.78 million (US$29.3 million).

The 146-unit serviced residence will be completed in the second half of 2009 and named Citadines Munich Arnulfpark. It is located about 20 minutes’ walk from Marienplatz, the epicentre and shopping hub of Munich, and has easy accessibility to the airport and major points of interest in the city.

As Munich is Germany’s leading economic area and a major international trade fair and holiday destination, there is therefore a strong demand in the extended-stay market from business travellers. Citadines Munich Arnulfpark, which enjoys an excellent location, will also be Ascott’s second Citadines-branded property in Germany. The property will enable the Group to tap on economies of scale and enhance the visibility of the Citadines brand in Germany.

Ascott’s existing property in Germany is the 118-unit Citadines Berlin Olivaer Platz in Berlin.