Ascott Serviced Residence Global Fund is investing about S$210m (€131.5m) to buy properties in the capitals of France and Vietnam.

The fund is buying livelyfhere Gambetta Paris, a 139-unit co-living property, to refurbish to introduce Ascott’s first co-living property in Europe under the lyf brand. The second acquisition is the 364-unit Somerset Metropolitan West Hanoi in Hanoi.

Ascott said the two properties would be acquired on a turnkey basis, and are expected to open in 2024.

The US$600m (€505.8m) fund, created in July 2015, is a 50-50 joint venture between the CapitaLand subsidiary Ascott and Qatar Investment Authority.

Mak Hoe Kit, managing director of Ascott Serviced Residence Global Fund, said the latest acquisitions brought the number of assets acquired by the fund to eight – all located in key gateway cities.

It has five operational properties in Jakarta, London, Paris, Singapore and Melbourne. The sixth property, currently under construction in North Sydney, is due for completion in 2022.

Kevin Goh, CapitaLand’s chief executive officer for lodging, said: “We are looking to work with like-minded capital partners to set up new funds to expand in resilient asset classes, such as co-living and student accommodation.

“Concurrently, we continue to secure more third-party management contracts and franchises to increase Ascott’s property fee income.”

He said the acquisition of the properties in France and Vietnam is in line with Ascott’s ambition to expand its global lodging business.

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