An unlisted global hospitality fund, jointly controlled by Singapore-based The Ascott and Qatar Investment Authority (QIA) is investing A$202m (€127.3m) in a serviced residence in Sydney.

The Ascott Serviced Residence Global Fund (ASRGF) will operate the property as Citadines Walker North Sydney.

The serviced residence is part of a 48-storey integrated development, which will include office and retail components and be the tallest tower in North Sydney on completion in 2021.

The fund bought its first Australian asset in 2016 when it acquired Docklands Quest in central Melbourne for A$72m.

Kevin Goh, Ascott’s chief executive officer, said: “This latest acquisition in Australia is in line with our strategy of growing our fund management portfolio through private equity funds, joint ventures and listed hospitality trusts – all of which provide a core asset base for our asset management business.

“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.

“Together with our capacity to co-invest with like-minded capital partners such as QIA, it gives us the ability to stay invested in quality assets for the long term.”

With the latest acquisition, ASRGF, which was launched as a 50-50 joint venture with QIA and a setup capital of US$600m, has now invested in assets valued at about S$849m in key markets including Singapore, Paris, and London.