SERVICED residence operator The Ascott and the Qatar Investment Authority (QIA) have embarked on a joint venture to create a US$600 million serviced residence fund.
According to a press release by Ascott’s parent company CapitaLand, the new fund will have an initial focus on Asia-Pacific and Europe, investing in serviced residences or rental housing for 10 years, with a three-year investment period.
Ascott will have first rights to manage the properties it acquires.
The fund will primarily be used on developments in business districts which can be taken to market quickly, such as those suitable for redevelopment or refurbishment.
The real estate group is also planning to launch six new funds with up to S$10 billion (US$7.35 billion) in total assets under management by 2020.
CapitaLand said that its fund management business will play a crucial role in its plan to build up its portfolio, especially across “key gateway cities” in Asia. It aims to manage 80,000 apartment units globally by 2020.