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Asset Management / Wealth Management
CLI launches US$600 million co-living fund
Fund achieves first close with commitments from institutional investors in Europe and Asia
Tom King 15 Feb 2024

Singapore-listed CapitaLand Investment (CLI) has established a new private fund with a target equity size of US$600 million to invest in serviced residences and co-living properties in major cities in Asia-Pacific.

The CapitaLand Ascott Residence Asia Fund II (CLARA II) has secured its first close with equity commitment from global institutional investors in Europe and Asia, and the fund is in the process of acquiring two seed assets, CLI says.

The assets are a 50% stake in the 308-unit Lyf Bugis in Singapore and a 100% stake in the 200-unit Lyf Shibuya in Tokyo from The Ascott Limited, a lodging business unit wholly owned by CLI.

Lyf Bugis in Singapore will be unveiled in mid-2024 while Lyf Shibuya in Tokyo will open later this year. CLI says the two freehold properties are strategically located within their respective city centres and are well-positioned to capture the strong demand from business and leisure travellers. Both properties are also set to be green-certified. 

In line with its asset-light strategy to grow its funds under management, CLI says it will hold a 20% sponsor stake in CLARA II, with the remaining 80% to be held by third-party institutional investors. 

The new fund will also leverage the global operating expertise of Ascott to manage its portfolio, which it says will create further value for its investors.

“Combining CLI’s investment management capabilities and Ascott’s expertise in operating lodging properties worldwide under our award-winning brands, we are well-positioned to support the growth of our private funds,” says Kevin Goh, chief executive officer for CLI Lodging and Ascott.

Besides Asia-Pacific, CLI also sees potential to establish more lodging private funds in other regions such as Europe.

Photo: The fund is acquiring a 50% stake in the 308-unit Lyf Bugis in Singapore. Credit: CLI

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