CapitaLand Investment Launches CapitaLand Ascott Residence Asia Fund II Amid Rising Lodging Demand

CLI launches CLARA II fund with US$600M target, investing in Asia Pacific's serviced residences and coliving spaces, leveraging Ascott's expertise.

CapitaLand Investment Limited (CLI) announces the establishment of CapitaLand Ascott Residence Asia Fund II (CLARA II), targeting an equity size of US$600 million to invest in serviced residences and coliving properties across key Asia Pacific markets. As CLI's second private fund focusing on such assets, CLARA II aims to capitalize on the growing demand for lodging, leveraging the operational expertise of The Ascott Limited, a wholly owned lodging business unit of CLI. Holding a 20% sponsor stake, CLI aligns with its asset-light strategy, enhancing value for investors with a portfolio of resilient and green-certified lodging assets.

CLARA II has already attracted global institutional investors from Europe and Asia, securing two seed assets: a 50% stake in lyf Bugis Singapore and a 100% stake in lyf Shibuya Tokyo, both strategically located in city centers and slated for green certification. These investments underscore the fund's strategy to harness strong demand from both business and leisure travelers, with properties opening in mid and late 2024 respectively.

Kevin Goh, CEO for CLI Lodging and Ascott, highlighted the synergy between CLI’s investment management and Ascott’s global lodging operations, aiming to provide sustainable returns and tap into the robust demand for trusted lodging brands. Mak Hoe Kit, Managing Director of Lodging Private Equity Funds at CLI, pointed out the resilience and attractiveness of serviced residences and coliving properties, citing trends like increased global mobility and the mainstreaming of coliving. CLARA II will focus on markets with solid economic fundamentals and transparent regulations, aiming to replicate the success of its predecessor fund, ASRGF, which saw properties like lyf Ginza Tokyo exceed rent targets post-launch.