Ascott invests $140m in two new long-stay properties

The Ascott serviced residence global fund, recently launched with the Qatar Investment Authority, has acquired two prime properties in Paris and Tokyo for US$104 million.

The fund will invest another US$33 million to convert the office building in Paris into a luxury serviced residence and embark on asset enhancement to reposition the serviced residence in Tokyo, bringing the total investment to US$137 million.

The 70-unit Citadines Suites Champs-Élysées Paris is slated to open in 2018 while the serviced residence that has been operating as Somerset Shinagawa Tokyo since acquisition will undergo asset enhancement to reposition the property with additional apartments to be reconfigured.

This is expected to be completed by end 2016.

With these acquisitions, Ascott now has more than 43,000 units across 277 properties, spanning 95 cities; cementing Ascott’s position as the world’s largest international serviced residence owner and operator.

Set up in July 2015, the US$600 million serviced residence global fund is Ascott’s largest private equity fund and a 50:50 joint venture with QIA.

The fund invests in serviced residences and rental housing properties with an initial focus on Asia Pacific and Europe.

Lee Chee Koon, Ascott 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 is a testament of our strong alignment of interest with our capital partners. This value-added fund will capitalise on Ascott’s strong capabilities in developing, repositioning and enhancing the value of serviced residences globally.

“As we gear up to achieve Ascott’s expansion target of 80,000 units worldwide by 2020, the fund provides the financial boost to support our acquisitions and growth.

“With the first right to manage properties acquired by the fund, we will be able to increase Ascott’s fee-based income.”