The Ascott, CapitaLand’s wholly-owned lodging business unit, has acquired a S$192 million (US$139 million) freehold serviced residence in North Sydney through its global fund with Qatar Investment Authority (QIA).
To be named Citadines Walker North Sydney, the serviced residence is part of a 48-storey integrated development with also office and retail components, and which will be the tallest tower in North Sydney upon its completion in 2021.
Ascott’s chief executive Kevin Goh said the latest acquisition is in line with the strategy of growing the company’s fund management portfolio through private equity funds, joint ventures and listed hospitality trusts.
“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,” he added.
Ascott also signed 13 other properties under franchise and management contracts across China, France, Indonesia, Kenya and Vietnam. With these newly secured properties, Ascott has achieved S$10 billion in asset value. Among them are four franchise contracts signed with Aegide Domitys which will mark Ascott’s foray into three new cities in France – Golfe-Juan, Tours and Roanne.
These 14 newly secured properties were announced on September 26 at the grand opening of La Clef Champs-Élysées Paris in France.