SINGAPORE (Aug 4): The Ascott Limited is investing $170.3 million in the serviced residences component of the Funan integrated development through its fund with Qatar Investment Authority (QIA).

In a press release on Friday, the wholly-owned serviced residence business unit of CapitaLand says that out of the $170.3 million, $90.5 million will be used to acquire the land for the development from CapitaLand Mall Trust (CMT).

The remaining estimated $80 million, which includes $11.3 million for construction works in progress up to the completion date of the transaction, will be used for developing the Singapore flagship of Ascott’s millennial-focused lyf brand on the site.

It will be slated to open in 2020 as lyf Funan Singapore, the serviced residence component of Funan which also comprises a mall as well as two office towers with retail and coworking spaces. The nine-storey co-living property spans about 121,000 sq ft in gross floor area (GFA), and will provide 279 units with the flexibility to offer up to 412 rooms.

According to Ascott, its acquisition from CMT cements its position as the “largest and fastest growing serviced residence operator in Singapore with close to 2,000 units in 12 properties”.

This follows the recent addition of the 240-unit lyf Farrer Park Singapore awarded by Low Keng Huat, as well as a prime 299-unit serviced residence at CapitaLand’s landmark integrated development at Raffles Place, it adds.

“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,” says Lee Chee Koon, CEO of Ascott.

“Given its strong economic fundamentals 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, as we continue to expand with our established Ascott, Citadines, Somerset, Quest and The Crest Collection brands.”

Shares of CapitaLand closed 2 cents lower at $3.74 on Thursday, whereas shares in CapitaLand Mall Trust was 1 cent lower at $2.02.