CapitaLand’s serviced residence unit Ascott is investing S$170.3 million, through its serviced residence global fund with Qatar Investment Authority (QIA), in the serviced residence component of the Funan integrated development.
Of the S$170.3 million, the fund is acquiring the land for the serviced residence component from CapitaLand Mall Trust (CMT) for S$90.5 million and developing the Singapore flagship of Ascott’s millennial-focused lyf brand on the site for an estimated S$80 million.
To be named lyf Funan Singapore, the nine-storey co-living property spans about 121,000 square feet in gross floor area. Slated to open in 2020, it will provide 279 units with the flexibility to offer up to 412 rooms.
lyf Funan Singapore is an integral part of Funan which also comprises a mall and two office towers offering cutting-edge retail innovations and coworking spaces, for customers to enjoy a complete live-work-play experience within the integrated development.
The acquisition also cements Ascott’s position as the largest and fastest growing serviced residence operator in Singapore with close to 2,000 units in 12 properties.
Mr Lee Chee Koon, Ascott’s chief executive officer, said: “Ascott is expanding at our fastest pace ever in Singapore and is now the country’s biggest serviced residence operator with close to 2,000 units in 12 properties. Singapore has seen historical highs in tourist arrival and spending last year 2 and was ranked the top Asian city for expatriates, with the best infrastructure in the world.
“Given its strong economic undamentals and position as one of the top global fintech hubs, Singapore is a key market for us to reach out to the millennial-minded consumers with our lyf brand.
“This year, we have so far invested about S$480 million on acquisitions and added over 20,000 units to Ascott’s portfolio, almost double the number of units secured for the whole of 2016. Through these investments, we are able to strengthen Ascott’s international cross-selling network, better reach out and cater to customers as well as enjoy greater economies of scale. With this growth trajectory, we are confident of racing ahead of our 2020 target of 80,000 units worldwide.”