CapitaLand's Ascott forays into Africa after a record year of growth

 Ascott 1 Oxford Street
Ascott 1 Oxford Street. CapitaLand

CapitaLand's serviced residence business unit, The Ascott on Monday announced its foray into Africa.

The Ascott secured two properties – Ascott 1 Oxford Street and Kwarleyz Residence – in Ghana's capital of Accra, one of the top African cities for investment.

The latest addition follows Ascott's advancement into South America in April, with its first two franchise properties in São Paulo, Brazil. Ascott has added 18 new cities across nine countries and secured a record of over 21,000 units in 2017.

The 220-unit Ascott 1 Oxford Street Accra will open in phases from 2019, while the 40-unit Kwarleyz Residence will open in the fourth quarter of 2018, the company said in a statement.

"The serviced residence industry in Africa has significant untapped potential," Thomas Wee, Ascott's Deputy Managing Director for India, Middle East & Africa said in a statement.

"Managing Kwarleyz Residence gives us quick time-to-market as it is already under development, while we design our second property under our premier Ascott The Residence brand, which will offer top business executives luxurious living in an exclusive environment."

The International Monetary Fund forecasts that Africa's economy will be the second-fastest growing in the world with an annual growth rate of 4.3 percent from 2016 to 2020.

With a current population of over one billion, Africa will be home to the world's largest working-age population in less than two decades.

Ascott plans to grow its franchise business through Quest Apartment Hotels, a company which owns properties across Australasia and which Ascott in July beefed up its stake in - from 20 percent to 80 percent.