Ascott Becomes Singapore’s Largest Serviced Residence Operator

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 in Singapore.

 Of the S$170.3 million, the fund is acquiring the land for the serviced residence component from CapitaLand Mall Trust 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 will span about 121,000 square feet in gross floor area, and will provide 279 units with the flexibility to offer up to 412 rooms. Scheduled to open in 2020, the lyf Funan Singapore is an integral part of Funan which also comprises a mall and two office towers.

Unveiled in November 2016, Ascott has four lyf properties – lyf Wu Tong Island Shenzhen and lyf DDA Dalian in China which are scheduled to open in 2018, followed by lyf Funan Singapore in 2020 and lyf Farrer Park Singapore in 2021.

 Besides Singapore and China, Ascott is actively looking at other potential markets including Australia, France, Germany, Indonesia, Japan, Malaysia, Thailand and the United Kingdom, as it works towards its target of achieving 10,000 units under the lyf brand worldwide by 2020.

Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said, “Globally, we are transforming Ascott’s business and accelerating our growth through strategic investments in leading companies such as Quest Apartment Hotels in Australasia, Synergy Global Housing in the U.S. and Tujia in China. 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.”

lyf Funan Singapore is Ascott’s fifth acquisition under its serviced residence global fund with committed equity of US$600 million (S$809 million). Set up through a 50:50 joint venture with QIA in July 2015, Ascott’s largest private equity fund has committed total investment amount of S$533 million to date on lyf Funan Singapore, La Clef Champs-Élysées Paris that will open in 2018, Citadines Islington London and Quest NewQuay Docklands Melbourne that will both open in 2019, as well as Somerset Shinagawa Tokyo which is already operational. Part of these investments will be funded by debt.

The Funan acquisition cements Ascott’s position as the largest and fastest growing serviced residence operator in Singapore with close to 2,000 units in 12 properties. Within a span of two months, Ascott has added about 1,000 units across four properties in Singapore; which includes securing a contract from Low Keng Huat (Singapore) Limited to manage a 166-unit Citadines Balestier Singapore that will open in 2021. This follows Ascott’s recent addition of the 240-unit lyf Farrer Park Singapore that was also awarded by Low Keng Huat, as well as a prime 299-unit serviced residence at CapitaLand’s landmark integrated development at Raffles Place. Both serviced residences are also slated to open in 2021. 

In Singapore, Ascott currently operates six serviced residences including Ascott Orchard Singapore, Ascott Raffles Place Singapore, Citadines Fusionopolis Singapore, Citadines Mount Sophia Singapore, Somerset Bencoolen Singapore and Somerset Liang Court Singapore.

See also: Ascott’s Brands and Expansion Plans for Philippines and Thailand - HD Video Interview.

See other recent news regarding: Ascott, Singapore, lyf.