CapitaLand Japan Co., Ltd.
CapitaLand Investment Forms CapitaLand Ascott Residence Asia Fund II to invest in accommodation facilities with increasing demand Initial closing completed, plans to acquire two LYF brand properties in Singapore and Japan as seed assets
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Singapore, February 27, 2024 – CapitaLand Investment Limited (CLI) has established a new private accommodation fund, CapitaLand Ascott Residence Asia Fund II (CLARA II). The target equity size is US$600 million (S$800 million [1]), and the company will invest in serviced residences (serviced apartments) and co-living properties (shared spaces with a focus on community-building) in gateway cities in major developed countries in the Asia-Pacific. Invest in Social & Lifestyle Hotels. CLARA II is CLI’s second private fund focused on serviced residences and co-living properties, following the US$600 million (S$800 million) Ascott Serviced Residence Global Fund (ASRGF) fund. In line with CLI’s asset-light strategy of expanding assets under management while maintaining strong collaboration with investors and partners, CLI holds a 20% sponsor’s stake in CLARA II, with the remaining 80% held by third-party institutional investors. I will hold it. CLARA II leverages the global operational know-how of The Ascott Limited, CLI’s wholly-owned accommodation division, to manage a portfolio of high-quality, green-certified accommodation properties with a return risk structure. By doing so, we will provide further value to our investors. CLARA II has made its first close and acquired two seed assets with equity commitments from global institutional investors from Europe and Asia. One is a 50% stake in Singapore’s LYF Bugis Singapore (308 rooms) [2] and the other is a 100% stake in LYF Shibuya Tokyo (200 rooms) held by Ascott in Japan. These two freehold properties are strategically located in their respective city centres, allowing them to capture the strong demand from business and leisure travelers. Additionally, both properties are scheduled to obtain green certification. LYF Bugis Singapore is scheduled to open in mid-2024, and LYF Shibuya Tokyo in the fourth quarter of 2024. Details of both properties are listed below. Kevin Goh, CEO of CLI Lodging and Ascott, said: “By combining CLI’s investment management capabilities with Ascott’s global expertise in operating award-winning accommodation brands around the world, we are well-positioned to support the growth of private funds. We have a strong financial foundation that allows us to identify and place quality assets into our private
funds.Additionally, we understand that travelers prefer brands they can trust, and CLARA II leverages Ascott’s global operational expertise. We will leverage our sales and marketing network to increase asset value and deliver sustainable returns to our
investors.As demand for overseas travel increases, investors are In addition to Asia-Pacific, we believe there is potential for more private accommodation funds to be established in other regions such as Europe. Mak Hoe Kit, Managing Director of Lodging and Private Equity Funds at CLI, said: “Serviced residences and co-living properties are attracting increased investor interest as they have proven to have a risk profile for income, even during the COVID-19 pandemic.These properties offer stable income from long-term guests. With the rise in global mobility, the mainstreaming of co-living, and the tendency for travelers to stay abroad for longer periods of time, this sector is growing. CLARA II targets markets with strong economic fundamentals and transparent regulation. We believe there are attractive investment and value-add opportunities in the developed markets of
Asia-Pacific.” Mak also said: “Through our first fund, ASRGF, we have demonstrated how we can deliver value to our investors. is a testament to our strong global investment team. After a successful rebrand and asset enhancement initiative, ASRGF’s first property sale exceeded expected returns. ASRGF’s newest property LYF Ginza Tokyo opened in November 2023 and has exceeded the average target room price ever since. As a trusted partner, we remain committed to delivering quality returns to our investors. [1] Exchange rate: 1 US dollar = 1.333 Singapore dollars [2] The remaining 50% of lyf Bugis Singapore is held by CapitaLand Wellness Fund [3] September 2022 CLI article “Serviced Residence (and Co-living) About CapitaLand Investment Limited (www.capitalandinvest.com) CapitaLand Investment Limited (CLI), headquartered in Singapore and listed on the Singapore Exchange, has a wide range of assets in Asia. A global real estate investment management company. As of September 30, 2023, CLI has approximately S$133 billion in AUM and approximately S$133 billion in FUM through 30 private funds and six REITs (listed real estate investment trusts and business trusts) in Asia Pacific, Europe and the Americas. It manages real estate worth S$90 billion. The asset classes of real estate under management are diverse, including retail, office, lodging (hotels, rental condominiums, and other lodging facilities), business parks, industrial real estate, logistics facilities, and data centers. CLI aims to grow fund assets and fee-related income and maintain efficient capital management through fund management, lodging operations management, and a wide range of other operational capabilities. As the investment management arm of CapitaLand Group, CLI works with CapitaLand Development, the group’s development division, to leverage its pipeline of investment opportunities. In addition, CapitaLand Group has placed sustainability at the core of its activities, and CLI is part of the group’s commitment to achieving net zero Scope 1 and 2 carbon emissions by 2050. As a responsible real estate company, we provide long-term economic value to our stakeholders and contribute to the environmental and social well-being of the communities in which we operate. CapitaLand Social Media Facebook: @capitaland /
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linkedin.com/company/capitaland-limitedYouTube: youtube.com/capitaland For inquiries: , please contact us using the contact information below. CapitaLand Investment Investor and Analyst Contacts Grace Chen Head, Investor Relations Tel: +65 6713 2883 Email:
grace.chen@capitaland.com Media Contact Michele NgHead, Group CommunicationsTel: +65 6713 2881Email: michele.ng@capitaland .com Japan Contact Yoko Aikawa Email: jp.marketing@capitaland.com Disclaimer This material constitutes an offer or solicitation of investment products to investors in jurisdictions where such offer or solicitation is not permitted. It’s not a thing. About Lyf Bugis Singapore and Lyf Shibuya Tokyo Targeting the next generation of travelers, each Lyf branded property offers an experience-driven social living concept for long-term or short-stay guests. LYF Bugis Singapore (scheduled to open in summer 2024) Located in the heart of Bugis, part of Singapore’s main commercial district, LYF Bugis Singapore is within walking distance to Bugis and Bencoolen MRT stations. The 308-room lyf Bugis Singapore is close to shopping areas such as Bugis Street and has easy access to Bugis’ Arts and Heritage precinct, which is lined with bars and restaurants along Arab Street and Haji Lane. LYF Bugis Singapore offers extensive common areas that support both social and active wellness. With a wealth of shared spaces including the coworking lounge “Connect,” the social kitchen “Bond,” and the coin laundry “Wash & Hang,” you can enjoy a stay that suits a variety of styles. We will also encourage interaction between guests through the common areas. Make the most of your stay by refreshing yourself at the Burn gym. Through events and programs planned by our community manager, Ambassador of Buzz, we support interaction between guests and their own mindfulness, creating a meaningful and enriching stay experience. LYF Shibuya Tokyo (Scheduled to open at the end of 2024) LYF Shibuya Tokyo is located in the center of Shibuya, which is attracting attention as a world-class,
cutting-edge city where Tokyo’s entertainment, commerce, culture, art, and technology fields dynamically intersect. I am. Located in the center of the shopping and entertainment area, with easy access, you can enjoy a unique stay in Shibuya. It is within a 5-minute walk from Shibuya Station, where various railway lines intersect, and has excellent access to other areas in Tokyo. LYF Shibuya Tokyo, with 200 rooms, is a uniquely designed space with LYF’s unique interpretation of the Shibuya area, including the coworking lounge “Connect”, the social kitchen “Bond”, the coin laundry “Wash & Hang”, and the gym “Burn”. We have common areas that LYF is proud of, and support a variety of styles of stay.
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