Singaporean real estate developer CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited’s (Ascott) serviced residence global fund with Qatar Investment Authority (QIA) has acquired two prime properties in Paris and Tokyo for USD104 million (S$145 million). The fund will invest another USD33 million (S$46 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 USD137 million (S$191 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 USD600 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.
Mr Lee Chee Koon, Ascott’s Chief Executive Officer, 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.”
“Previously the private residence of the renowned Hennessy family, Citadines Suites Champs-Élysées Paris is a rare gem in the epicentre of the world’s most popular tourist destination.
“Japan is an equally attractive destination for corporate and leisure travellers given the weak Japanese yen, eased visa requirements and proliferation of low-cost carriers, coupled with the implementation of pro-business policies and designation of special economic zones.” Mr Lee added: “Ascott will continue to build up scale by working with strong capital partners and we will seek investment opportunities in gateway cities. This year, we have added more than 6,000 serviced residence units to our portfolio with over 30 management contracts. Besides investments and management contracts, we will also seek more strategic alliances and franchises to expand Ascott’s presence globally.”
Citadines Suites Champs-Élysées Paris
The five-storey Haussmannian-style building along Rue de Bassano was formerly the private residence of the renowned cognac distillers, the Hennessy family. In the prestigious eighth district of Paris, Citadines Suites Champs-Élysées is an exclusive address in close proximity to high-end fashion houses, surrounded by leisure attractions such as the Arc de Triomphe, Grand and Petit Palais, embassies and international companies.
Somerset Shinagawa Tokyo
Somerset Shinagawa Tokyo is currently a 50-unit serviced residence operating in the high-end residential district of Takanawa, an area popular with senior management executives from multinational companies. The serviced residence is a five-minute walk from Shinagawa Station, a major transportation hub connecting the Shinkansen and six railway lines, less than 20 minutes away from Tokyo International Airport (Haneda Airport) and has easy access to key stations in Tokyo city.
