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Singapore-based real estate investment manager CapitaLand Investment (CLI) has closed its latest value-add lodging private fund, securing total capital commitments of USD650 million, exceeding its initial target by USD50 million. The fund, known as CLARA II, is expected to increase CLI's total assets under management (AUM) by approximately USD1.6 billion. The investment vehicle has attracted a diversified mix of institutional investors, pension funds and financial institutions from Asia, Europe and North America, with nearly half of the capital already deployed into projects in Japan and Singapore.
CapitaLand Investment (CLI), one of Asia's leading real estate investment managers, announced earlier this week that it had successfully closed its latest value-add lodging fund, CapitaLand Ascott Residence Asia Fund II (CLARA II), at USD650 million in equity commitments. This amount surpassed its initial fundraising goal by USD50 million, underscoring strong investor confidence in the Asia-Pacific lodging sector. The fund will contribute an estimated USD1.6 billion to CLI's total assets under management once fully invested. Advertisement
The company explained that CLARA II had received backing from a mix of returning and new investors, including institutional investors, pension funds and financial institutions spanning Asia, Europe and North America. This broad participation reflected sustained interest in the firm's lodging strategy, which focuses on transforming under-utilised urban buildings into serviced apartments, rental housing and other lodging facilities catering to long-stay business and leisure travellers.
CLI revealed that around 50 percent of the fund's committed equity has already been deployed across three key assets located in Japan and Singapore. The firm stated that these projects were selected based on their potential for value enhancement through repositioning and redevelopment. The fund will continue to seek additional acquisition opportunities across key Asia-Pacific markets, particularly in major metropolitan centres where housing demand and tourism-related accommodation needs remain strong.
As of the past quarter, CapitaLand Investment's funds under management were valued at approximately S$117 billion, equivalent to around USD90.4 billion. The closing of CLARA II strengthens CLI's reputation as a leading player in the lodging investment space, following the success of its predecessor fund, CLARA I, which had demonstrated steady performance in the region's hospitality sector.
By surpassing its fundraising target for CLARA II, CapitaLand Investment has reaffirmed its credibility as a trusted platform for global investors seeking exposure to Asia-Pacific's lodging and residential markets. The strong response from both existing and new institutional partners highlights confidence in the company's value-add investment approach and regional expertise. With half of the fund's capital already allocated to projects in Japan and Singapore, CLI is poised to continue identifying promising assets in high-demand urban areas, focusing on adaptive reuse and long-stay accommodation formats that align with evolving post-pandemic travel and living trends.
Source: Reuters
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