The Ascott serviced residence global fund, CapitaLand’s wholly owned serviced residence business unit, and Qatar Investment Authority (QIA) have acquired two prime properties in Paris and Tokyo for $104 million.

The fund will invest another $33 million to convert the office building in Paris into a luxury serviced residence and embark on asset enhancement to reposition the serviced residence in Tokyo, bringing the total investment to $137 million.

The 70-unit Citadines Suites Champs-Élysées Paris is slated to open in 2018 while the serviced residence that has been operating as Somerset Shinagawa Tokyo since acquisition will undergo asset enhancement to reposition the property with additional apartments to be reconfigured.

This is expected to be completed by end 2016.

With these acquisitions, Ascott now has more than 43,000 units across 277 properties, spanning 95 cities; cementing Ascott’s position as the world’s largest international serviced residence owner and operator.

Lee Chee Koon, Ascott’s chief executive officer, said: “Ascott serviced residence global fund’s maiden acquisitions are quality assets in key gateway cities where demand for serviced residences by expatriates and travellers remains strong.”

“This is a testament of our strong alignment of interest with our capital partners. This value-added fund will capitalise on Ascott’s strong capabilities in developing, repositioning and enhancing the value of serviced residences globally. As we gear up to achieve Ascott’s expansion target of 80,000 units worldwide by 2020, the fund provides the financial boost to support our acquisitions and growth. With the first right to manage properties acquired by the fund, we will be able to increase Ascott’s fee-based income.” Citadines Suites Champs-Élysées Paris

The five-storey Haussmannian-style building along Rue de Bassano was formerly the private residence of the renowned cognac distillers, the Hennessy family. In the prestigious eighth district of Paris, Citadines Suites Champs-Élysées is an exclusive address in close proximity to high-end fashion houses, surrounded by leisure attractions such as the Arc de Triomphe, Grand and Petit Palais, embassies and international companies.

Somerset Shinagawa Tokyo

Somerset Shinagawa Tokyo is currently a 50-unit serviced residence operating in the high-end residential district of Takanawa, an area popular with senior management executives from multinational companies. The serviced residence is a five-minute walk from Shinagawa Station, a major transportation hub connecting the Shinkansen and six railway lines, less than 20 minutes away from Tokyo International Airport (Haneda Airport) and has easy access to key stations in Tokyo city.

Set up in July 2015, the $600 million serviced residence global fund is Ascott’s largest private equity fund and a 50:50 joint venture with QIA.

The Ascott Limited is a Singapore company that has grown to be the world's largest international serviced residence owner-operator. It has over 26,000 operating serviced residence units in key cities of the Americas, Asia Pacific, Europe and the Gulf region, as well as over 16,000 units which are under development, making a total of more than 43,000 units in over 270 properties.

The company operates three award-winning brands – Ascott, Citadines and Somerset. – TradeArabia News Service