Lyf Shibuya Tokyo is one of eight new Lyf stores announced in January (Source: CLI)
Singapore property giant CapitaLand Investment (CLI) aims to raise up to $600 million in a newly launched Asia-Pacific fund targeting serviced housing and co-living opportunities, with Ascott’s accommodation arm’s assets A Singaporean real estate giant announced that it is sowing seeds from two sources. Wednesday.
CapitaLand said its CapitaLand Ascott Residences Asia Fund II (CLARA II), which targets major cities in the Asia-Pacific region, has already raised its first round of unspecified funding with support from both European and Asian institutional investors. It is said that the closing has been achieved.
The new fleet will incorporate two co-living properties acquired from Ascott, including Hong Kong’s Gau・Includes half of the shares in Singapore’s Hotel G acquired from Capital. Fund, a private organization specializing in Southeast Asia, was established by CapitaLand in October.
“CLARA II targets markets with strong economic fundamentals and transparent regulation,” said Mak Ho Kit, Managing Director of Lodging Private Equity Funds at CLI. “We believe there are good investment and value-add opportunities in these key developed markets in Asia Pacific.”
Seed Ascot assets
CLI announced that it will hold a 20% stake as the sponsor of the new fund, with the remaining 80% held by third-party investors. A company representative declined to provide details about the investors, but said the deal “includes new relationships in CLI’s private funds business.”
Kevin Goh, CEO of Ascot and CLI Lodging
The new vehicle will be established as a successor fund to the Ascott Serviced Residences Global Fund (ASRGF), which was established by Ascott in 2015 in a 50-50 joint venture with the Qatar Investment Authority.
After raising $600 million, the strategy was fully rolled out by 2022, with the partners acquiring Riff Ginza Tokyo that year as a final addition to the portfolio. The 140-unit property opened last November and has “exceeded average target rents since then,” Mack said.
The new fund will start with 308 rooms at Hotel G, a property near Singapore’s Bugis district that was valued at 240 million yen when Ascott and CapitaLand Wellness Fund acquired it from Gau Capital Partners last month. It is valued at Singapore dollars, or S$779,220 per key. The new owners are already working on improvements to the affordable hostel, which will be rebranded as Rif Bugis Singapore when it reopens in mid-2025.
The second seed asset in CLARA II’s portfolio is Lyf Shibuya Tokyo, with the fund acquiring a 100% stake in the 200-unit Japanese property from Ascott for an unspecified amount.
The Tokyo property is one of eight new Lyf stores Ascott announced last month, scheduled to open within a five-minute walk of Shibuya Station during the fourth quarter.
With Ascott managing the assets, Ascott and CLI Lodging CEO Kevin Go said the CLARA II portfolio will leverage the company’s established network and traveler preferences for trusted accommodation brands. He said he hopes to benefit from the increase.
“This allows us to increase the value of our assets and provide investors with sustainable returns. As international travel continues its upward trajectory, investors will further benefit from strong accommodation demand.” Mr Goh said.
European accommodation included in the itinerary
Mack focuses on providing premium extended-stay accommodation with flexible rental terms, and believes that serviced residences and co-living assets have the ability to generate stable income in the face of changing market conditions. Therefore, it is attracting attention from investors.
“Trends such as increased global mobility, the mainstreaming of communal living and travelers spending more time abroad place the sector in a strategic position to offer attractive benefits,” he added. .
Mr Goh said that beyond the Asia-Pacific region, CLI is also considering setting up a private accommodation fund in Europe and other regions.
Including projects under development, Ascott has more than 5,500 units under the Lyf brand across 30 properties around the world, the majority of which are located in its home base of Singapore. The company aims to expand its co-living portfolio by more than five times to 30,000 units in 150 locations by 2030.