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The Ascott to invest S$170m to develop co-living space at Funan integrated project
THE Ascott, CapitaLand's serviced residence operator, will be investing S$170.3 million to develop the co-living space in Funan integrated project, located at the heart of Singapore's civic and cultural district.
Through its 50:50 serviced residence global fund with Qatar Investment Authority (QIA), The Ascott will invest in the serviced residence component of the Funan integrated development, which will be named lyf Funan Singapore.
Part of the money will be used to acquire the land for the serviced residence component from CapitaLand Mall Trust (CMT) for S$90.5 million and develop the Singapore flagship of Ascott's millennial-focused lyf brand on the site for an estimated S$80 million, which includes S$11.3 million for construction works in progress up to the completion date of the transaction.
The nine-storey co-living property spans about 121,000 square feet in gross floor area (GFA), and is slated to open in 2020. In addition to the serviced residence, Funan comprises a six-storey retail podium with a GFA of about 500,000 sq ft and two six-storey Grade A office towers with a GFA of about 266,000 sq ft. Funan is held on a 99-year leasehold title commencing from December 12, 1979, with a remainin lease term of about 61 years.
CMT is expected to reap a net gain of about S$20.6 million from its divestment of the Funan integrated development.
lyf Funan Singapore is Ascott's fifth acquisition under its serviced residence global fund, with committed equity of US$600 million (S$809 million).