Ascott and Qatar Investment Authority to set up US$600m fund

Singapore

THE Ascott Limited, the serviced residence arm of CapitaLand, is partnering Qatar Investment Authority (QIA) to set up a US$600 million fund with an initial focus on investing in Asia-Pacific and Europe.

This fund marked its largest private equity fund to-date and is part of CapitaLand's efforts to have five to six new funds worth S$8-10 billion in asset under management (AUM) in the next three to four years.

The latest announcement by CapitaLand prompted several "buy" calls from analysts, who expect a renewed focus on its fund management business to keep the group's balance sheet light and improve its return on equity (ROE).

Under the 50-50 joint venture with QIA, the fund will invest in suitable properties for asset enhancement, repositioning or conversion, development or redevelopment into serviced residences and rental housing properties. The investment period is three years and the joint venture can hold the assets for up to 10 years, wi…