Global real estate investment manager CapitaLand Investment (CLI) announced that it secured additional commitments from institutional investors for its value-add lodging fund CapitaLand Ascott Residence Asia Fund II (CLARA II).
CLARA II, a follow-on fund to the $600 million Ascott Serviced Residence Global Fund (ASRGF), invests in serviced residences and co-living properties in gateway cities in key developed Asia Pacific markets. CLI did not disclose the amount of the fresh commitments.
CLI said the latest capital commitments will increase its funds under management by about S$470 million (about $365 million). CLI maintains a roughly 20% stake in the fund under its asset-light strategy to align interests with capital partners.
“The additional capital commitments reinforce CLI’s reputation as a trusted steward and the continued strong investor interest in serviced residences, which have proven to be a resilient asset class with the ability to deliver attractive yields,” said CLI Lodging CEO Kevin Goh.
As part of the additional commitments, CLARA II and its co-investors acquired a prime mixed-use property in Tokyo for over 30 billion yen (about $207 million). The acquisition marks the fund’s third asset and second in Japan.
The prime mixed-use asset is in Shinjuku, one of Tokyo’s most popular shopping, entertainment, and business districts. Ascott will manage the 179-unit serviced residence. The property will be rebranded as Citadines Shinjuku Tower Tokyo and is set to be launched in phases from 2H 2026.
The 22-storey development will feature studio to three-bedroom apartments catering to both corporate and leisure travelers.
The acquisition is CLARA II’s third asset and second in Japan. CLI said the move reinforces its strategy of refurbishing underutilised assets to deliver resilient returns, leveraging The Ascott Limited’s operational platform and global marketing reach.
In Japan, CLI has a diversified portfolio of over 70 lodging, office, logistics, and self-storage properties across nine cities, including Tokyo, Kanagawa, Osaka, Nagoya, Kyoto, Fukuoka, Hiroshima, Kobe, and Sapporo.
CLI secured the first close of CLARA II, which has a target size of $600 million, in February 2024. It secured commitments from global institutional investors from Europe and Asia.
Besides Asia Pacific, CLI is looking at the potential to establish more lodging funds in other regions, such as Europe, according to an earlier company announcement.
