CapitaLand Ascott Trust (CLAS) is acquiring a 50% share in the lyf Funan Singapore co-living asset for S$146.4m (€102m) from the Qatar Investment Authority-backed Ascott Serviced Residence Global Fund (ASRGF).
The Ascott Limited, the sponsor of CLAS, holds a 50% stake in ASRGF.
Serena Teo, CEO of CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management, said: “The proposed acquisition of lyf Funan Singapore is exemplary of our portfolio reconstitution strategy to recycle capital into higher yielding assets.
“Being a key gateway city, growth in demand in the Singapore hospitality market is expected to outpace supply as global flight connectivity and capacity increase. Additionally, income contribution from Singapore will balance the contribution from CLAS’s overseas markets.”
After completion of the proposed acquisition, CLAS will have five properties in Singapore, increasing the proportion of its total assets in the country from 16% to 19%.
Once the deal is completed, CLAS will enter a lease with Ascott for lyf Funan Singapore.
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