Operator behind Dubai's Citadines acquires $139m Sydney property

Operator behind Dubai's Citadines acquires $139m Sydney property
The company also signed 13 properties under franchise and management contracts.
Published: 20 October 2019 - 5:15 a.m.

Singapore-based serviced residence operator The Ascott Limited, which is a fully-owned business unit of CapitaLand, has announced the signing of 13 properties under franchise and management contracts, and has acquired a $139m (AED509m) freehold serviced residence in the Central Business District of North Sydney through the Ascott Serviced Residence Global Fund (ASRGF), raising its total asset value to $7.3bn (AED26.8bn).

As part of its continued global expansion into the Middle East, Africa, and Turkey region, Ascott has 26 properties in 12 cities – both operational and in the pipeline – which include Ascott Corniche Al Khobar, Somerset Downtown Al Khobar, and Ascott Villas Riyadh in Saudi Arabia; Citadines Al Ghubrah Muscat in Oman; Somerset City Centre Atyrau in Kazakhstan; Citadines Maslak Istanbul in Turkey; and Citadines Culture Village Dubai in the UAE.

The acquired Sydney freehold serviced residence named Citadines Walker North Sydney – the tallest tower in North Sydney when completed in 2021 – will be part of a 48-storey integrated development that has office and retail components.

ASRGF has also invested in Citadines Islington London, which will open this November; and lyf Funan Singapore, which started operations in September 2019.

Commenting on the Sydney acquisition, chief executive officer at Ascott, Kevin Goh, said: “This latest acquisition in Australia is in line 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.”

Goh added: “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. Ascott enjoys deep presence in many key gateway cities, across various lodging segments, from serviced residences, hotels, coliving apartments to leasing apartments.”

Ascott has reached a total of more than 112,000 units in more than 700 properties, on track to meet its global target of 160,000 units by 2023.

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