SINGAPORE (Sept 27): Ascott, the lodging business wholly owned by CapitaLand, is investing $192 million in a freehold serviced residence in the central business district of North Sydney.

The acquisition is through the Ascott Serviced Residence Global Fund (ASRGF), the company’s global US$600 million ($833 million) fund that was set up in 2015 through a 50:50 joint venture with Qatar Investment Authority (QIA).

To be named Citadines Walker North Sydney, the serviced residence is part of a 48-storey integrated development, which also includes office and retail components.

When completed in 2021, it will be the tallest tower in North Sydney.

“This latest acquisition in Australia is in ine with our strategy of growing our fund management portfolio through private equity funds, joint ventures and listed hospitality trusts – all of which provide a core asset base for our asset management business,” says Ascott CEO Kevin Goh.

“We believe in achieving scale in the business, and fund management is central to the active capital management strategy of Ascott as a dominant lodging real estate player,” he adds.

Along with the Sydney acquisition, Ascott on Sept 26 also announced the signing of 13 other properties under franchise and management contracts across China, France, Indonesia, Kenya and Vietnam.

Together, these 14 new properties offer more than 2,200 units and bring Ascott’s asset value to over $10 billion.

“We have more than 66,000 operating units and are targeting to open another 19 properties adding more than 2,800 units this year. We will continue to boost our fee income through growing our assets under management and lodging management business,” Goh adds.

Shares in CapitaLand closed flat at $3.52 on Thursday.