CapitaLand’s lodging unit The Ascott is acquiring a serviced residence property in North Sydney, Australia, for S$192 million (A$202.2 million), the company said in a filing to SGX Thursday.
The acquisition is via the Ascott Serviced Residence Global Fund (ASRGF), which is Ascott’s 50:50 private equity fund with Qatar Investment Authority (QIA), the company said.
The property will be named Citadines Walker North Sydney, and it is part of a 48-storey development which also includes office and retail components, Ascott said. The building will be North Sydney’s tallest when it is completed in 2021, the company added.
“This latest acquisition in Australia is in line with our strategy of growing our fund management portfolio through private equity funds, joint ventures and listed hospitality trusts – all of which provide a core asset base for our asset management business,” Kevin Goh, Ascott’s CEO, said in the statement.
“We believe in achieving scale in the business, and fund management is central to the active capital management strategy of Ascott as a dominant lodging real estate player,” Goh added.
In addition, Ascott said it also signed 13 management and franchise contracts across China, France, Indonesia, Kenya and Vietnam, bringing the company’s asset value to S$10 billion.
ASRGF, set up in 2015, has US$600 million, or around S$833 million in assets, making it Ascott’s largest private equity fund, the filing said, adding the addition of .Citadines Walker North Sydney would bring the total asset value to around S$849 million.
La Clef Champs-Élysées Paris, which opened Thursday, is among ASRGF’s investments, the filing said, adding the fund has also invested in Citadines Islington London, due to open in November, and lyf Funan Singapore, which began operations this month.