Singapore-based CapitaLand’s wholly-owned lodging business unit, The Ascott Limited, announced on Thursday that it is investing S$192 million ($139 million) in a serviced residence in North Sydney, Australia.
The deal was conducted through its global fund with Qatar Investment Authority (QIA), the Ascott Service Residence Global Fund. Other assets invested by the fund include Citadines Islington London as well as lyf Funan Singapore.
To be named Citadines Walker North Sydney, the serviced residence is part of a 48-storey integrated development which also has office and retail components and will be the tallest tower in North Sydney upon its completion in 2021.
“The latest acquisition in Australia is in line with our strategy of growing our fund management portfolio through private equity funds, joint ventures, and listed hospitality trusts – all of which provide a core asset base for our asset management business,” said Ascott CEO Kevin Goh.
He added Ascott’s deep presence in key gateway cities across various lodging segments provides a ready pipeline of assets like Citadines Walker North Sydney for capital deployment.
“We have an established owner-operator track record of creating value through sound asset management strategies as well as delivering robust and attractive risk-adjusted returns for our investors. Together with our capacity to co-invest with like-minded capital partners such as QIA, it gives us the ability to stay invested in quality assets for the long term.”
At the same time, Ascott has also signed on 13 other properties under franchise and management contracts, bringing the firm’s asset value to S$10 billion ($7.24 billion). The lodging-owner operator said it has secured over 10,600 units for 2019. In total, it has more than 112,000 units in over 700 properties and is on track to meet its global goal of 160,000 by 2023.
In July, Ascott Resident Trust that is managed by CapitaLand’s indirect wholly-owned subsidiary, and Ascendas Hospitality Trust announced a merger proposal to create Asia’s largest hospitality trust with an asset value of over $5.5 billion.