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CapitaLand Investment Limited (CLI) has launched CapitaLand Ascott Residence Asia Fund II (CLARA II), a new private lodging fund with a target capital size of USD 600 million to invest in serviced residence and co-living properties in Asia’s gateway cities. did. .
CLARA II is the successor fund to the US$600 million Ascott Serviced Residences Global Fund (ASRGF). The latter’s latest property, LYF Ginza Tokyo, opened in November 2023 and has exceeded average target rents ever since.
CLI will hold a 20% sponsor’s stake in CLARA II, in line with its asset-light strategy to grow capital under management while maintaining strong collaboration with investors and partners. The remaining 80% is held by third-party institutional investors.
The new fund has secured an initial close on capital commitments from global institutional investors in Europe and Asia and will acquire two seed assets. It has acquired a 50% stake in the 308-unit LYF Bugis Singapore, which is scheduled to open in mid-2024. His 200-unit LYF Shibuya, scheduled to open in the fourth quarter of 2024, will open in Tokyo in which he owns 100% ownership.
The two freehold properties are strategically located in their respective city centers and are well positioned to capture the strong demand of business and leisure travellers. Both properties will be green certified.
Kevin Goh, CEO of CLI Lodging and Ascott said: “By combining CLI’s investment management capabilities with Ascott’s expertise in operating accommodation properties around the world under award-winning brands, we are well placed to support the growth of private funds.”
“We are in a strong financial position to capture good investment opportunities and infuse high-quality assets into our private funds. We leverage our global operational expertise and sales and marketing network, which enables us to increase the value of our assets and deliver sustainable returns to our investors. As international travel continues its upward trajectory , investors will further benefit from strong lodging demand.”
Mr Goh added that there is a possibility of setting up more private lodging funds in other regions such as Europe.
Mak Ho Kit, managing director of lodging private equity funds at CLI, said serviced housing and co-living facilities have proven resilient during the pandemic.
“These properties generate steady income from long-stay guests and have the flexibility to host short-stay guests to maximize revenue.Increasing global mobility, mainstreaming of co-living, and spending time abroad Trends such as increased travel numbers place this sector in a strategic position to offer attractive returns,” said Mack. He added that he would target them.
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