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Ascott's global fund acquires Paris, Tokyo properties for US$104m
THE Ascott's US$600 million serviced residence global fund - which is a 50:50 joint venture with the Qatar Investment Authority (QIA) - has acquired two prime properties in Paris and Tokyo for US$104 million.
The Ascott is the serviced residences arm of CapitaLand.
The fund will invest another US$33 million to develop the office building in Paris into a 70-unit luxury serviced residence while conducting an asset enhancement to reposition the serviced residence in Tokyo. As a result, it plans to spend a total of US$137 million on the two properties.
The Citadines Suites Champs-Élysées Paris is expected to open in 2018. Meanwhile, the existing Somerset Shinagawa Tokyo will undergo asset enhancement to reposition the property with additional apartments by the end of next year.
This latest couple of acquisitions will boost Ascott's portfolio to over 43,000 units across 277 properties. Ascott is looking to hit 80,000 units by 2020.
Ascott and QIA's fund invests in serviced residences and rental housing properties with an initial focus on Asia Pacific and Europe.
Lee Chee Koon, Ascott's chief executive, said: "Ascott serviced residence global fund's maiden acquisitions are quality assets in key gateway cities where demand for serviced residences by expatriates and travellers remains strong. This value-added fund will capitalise on Ascott's strong capabilities in developing, repositioning and enhancing the value of serviced residences globally."