The Ascott Group (Ascott) is tapping on Russia's increasing demand for quality serviced residences by signing a Memorandum Of Understanding (MOU) with Amtel Properties Development (Amtel), an established property development group in Russia. This development makes Ascott the first international, branded serviced residence owner-operator to enter Russia.

Together, the two companies will jointly contribute an equal share to an initial fund of US$100 million. Ascott will take 50% equity in the fund and manage the serviced residences, while Amtel will take the remaining 50% equity and the role of identifying potential sites and developing the serviced residences. Building on this fund, Ascott targets to launch 1,000 serviced residence units in Russia by 2010.

In addition to the MOU, the Group was also awarded a management contract by Amtel to manage Somerset Strogino, Moscow, a 150-unit serviced residence located in one of Moscow's technology business parks along Kulakova Street. The property is scheduled to be completed in 2009.