Bouwinvest, which invests internationally on behalf of Dutch pension fund BpfBouw, has made a US$75m (€69m) commitment to an Asia Pacific value-add residential fund managed by CapitaLand Investment (CLI).
The Dutch manager, investing on behalf of the Bouwinvest Asia Pacific Mandate, has committed the capital to CapitaLand Ascott Residence Asia Fund II (CLARA II), a fund focused on furnished serviced accommodation and co-living concepts in gateway cities within developed markets in the region.
The S$800m CLARA II fund, which expects to transform well-located but ageing or underperforming properties like hotels, offices, or residential buildings, has so far acquired two properties in Singapore and Tokyo as seed assets. The two properties will operate under Ascott’s lyf brand.
Robert Koot, director of Asia-Pacific investments said: “Besides the financial returns, we have agreed on ambitious and progressive ESG targets with managers in several of our international investments. So I am very pleased that CLI Investment is as also committed to sustainable investment as we are.”
Jorrit Sennema, portfolio manager Asia-Pacific said: “With this hybrid serviced residences strategy we intend to pivot between short and long-stay hospitality demand in the Asian gateway markets.
”We believe CLI is best positioned to capitalise on the recovery of the Asian hospitality sector through their long and successful track record in the lodging space.”
Mak Hoe Kit, managing director, lodging private equity funds, CapitaLand Investment, said: “With trends such as increased global mobility, co-living becoming mainstream and travellers spending more time overseas, the serviced residence and co-living sector is strategically positioned to offer attractive returns.”
To read the latest IPE Real Assets magazine click here.
