CapitaLand sets up $809m serviced residence fund with Qatar Investment Authority

This is Ascott’s largest private equity fund.

CapitaLand today revealed that Ascott, its wholly owned serviced residence business unit, has entered into a 50:50 joint venture with Qatar Investment Authority (QIA) to set up a $809m (US$600m) serviced residence fund.

This is Ascott’s largest private equity fund to date and will have an initial focus on the Asia Pacific and Europe regions.

Through the partnership in serviced residences, Ascott and QIA will each contribute $405m (US$300m) of equity funds to the joint venture.

The fund will invest in serviced residences or rental housing properties with an initial focus on the Asia Pacific and Europe regions, for a term of 10 years with an investment period of three years.

It will invest in development, redevelopment and turnkey opportunities, as well as acquire suitable projects for asset enhancement, repositioning or conversion into serviced residences and rental housing properties.

CapitaLand said that this move is part of its goal to launch six new funds with total assets under management of up to $10 billion by 2020.