CapitaLand Investment Limited (CLI) has raised more than US$650m (€565.6m) in equity commitments and co-investments in the final close for its value-add lodging fund.
CapitaLand Ascott Residence Asia Fund II’s (CLARA II) capital raised was above its US$600m target, securing commitments from a diverse pool of new and repeat investors, including institutions, pension funds and financial institutions from Asia, Europe and North America.
CLI has taken a 20% sponsor stake in the vehicle.
CLARA II targets opportunities in the living and lodging sector across gateway cities in Asia Pacific, focusing on unlocking value by transforming under-utilised assets into high-performing living and lodging properties.
The fund has deployed approximately half of its committed equity across three assets. CLARA II’s portfolio comprises a serviced residence and a co-living property in Japan and Singapore.
Andrew Lim, group COO for CLI, said: “We are seeing increasing investor allocations into the sector attracted by their long-term growth potential. This is underpinned by trends such as rising mobility, the surge in ‘bleisure’ travel and demand for flexible living arrangements.”
Mak Hoe Kit, managing director, lodging private equity funds, CLI, said: “The strong support we have received from CLI’s international network of capital partners demonstrates investors’ trust in our capabilities and lodging fund strategy.
“Our competitive edge in seeing through the full life cycle of our assets is key to CLARA II’s value-add strategy.”
Mak said returns on divestment for the group’s previous assets such as lyf Ginza Tokyo and lyf Funan Singapore were above the fund’s target, generating alpha for capital partners.
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