Ascott Expands FUM with Acquisition of Two Properties in Paris and Hanoi

Ascott has entered into separate agreements to acquire two properties in Paris, France and Hanoi, Vietnam for about S$210 million (approximately US$156 million).

The acquisition of the two properties through the Ascott Serviced Residence Global Fund (ASRGF), Ascott’s private equity fund with Qatar Investment Authority, will boost Ascott’s total fund assets under management (FUM) to about S$8 billion.

Both properties will be acquired on a turnkey basis and are expected to open in 2024.

The acquisition in Paris is a freehold asset which will be refurbished to introduce Ascott’s first co-living property in Europe under the lyf brand.

Named livelyfhere Gambetta Paris (pictured), the 139-unit property is located in the 20th arrondissement, not far from the Sorbonne, a 10-minute drive to Bagnolet, and near galleries, cinemas, trendy cafés, restaurants, street art and music venues.

With this addition, Ascott has a total of 16 lyf properties with more than 3,100 units across 13 cities and nine countries in Asia Pacific and Europe.

The acquisition in Hanoi is the 364-unit Somerset Metropolitan West Hanoi. It is located in Hanoi’s new Central Business District, close to several government agencies as well as local and international corporations. Somerset Metropolitan West Hanoi is a 10-minute drive to the Vietnam National Convention Centre, the largest convention centre in Vietnam and the Noi Bai International Airport is a 30-minute drive away.

Mr Kevin Goh, CapitaLand’s Chief Executive Officer for Lodging said, “Ascott Serviced Residence Global Fund and our sponsored hospitality trust, Ascott Residence Trust are key investment platforms to grow our FUM in a capital efficient manner. Our interests are aligned with both our private and public investors, as we put our own capital to work alongside theirs, bringing the strengths of our global reach and operating expertise to deliver the required investment returns. We are therefore seeing strong growth momentum from fee-related earnings (FRE) generated through the management of our private fund and the listed hospitality trust as well as recurring fees earned from asset management and property management.”

Mr Goh added, “Our acquisition of these two prime properties in France and Vietnam is in line with Ascott’s ambition to expand our global lodging business. With a presence in over 190 cities across over 30 countries, the scale of our operations worldwide gives Ascott favourable access to proprietary deal flows. We are looking to work with like-minded capital partners to set up new funds to expand in resilient asset classes, such as co-living and student accommodation, to accelerate our FUM and FRE growth. Concurrently, we continue to secure more third-party management contracts and franchises to increase Ascott’s property fee income.”

With the acquisition of livelyfhere Gambetta Paris and Somerset Metropolitan West Hanoi, there will be eight properties with close to 1,700 units held under the ASRGF.

The fund has five operational properties - Ascott Sudirman Jakarta, Citadines Islington London, La Clef Champs-Élysées Paris, lyf Funan Singapore, and Quest NewQuay Docklands Melbourne. Citadines Walker North Sydney is slated to open in 2022.

Ascott’s Presence in France and Vietnam

Ascott has established a strong presence in France and Vietnam, having been operating in these countries for more than 35 years and over 25 years respectively.

With the addition of livelyfhere Gambetta Paris, Ascott will have over 3,500 units in 34 properties across 13 cities in France. Ascott currently has 17 properties in Paris, while the remaining properties are located in cities such as Cannes, Lyon, Marseille, Strasbourg, and Toulouse.

In Vietnam, Somerset Metropolitan West Hanoi will increase Ascott’s portfolio to over 7,600 units across 31 properties in 10 cities. In addition to the gateway cities of Ho Chi Minh [Saigon] and Hanoi, Ascott also has properties in cities such as Binh Duong, Cam Ranh, Danang, Hai Phong, Halong City, Hoi An, Nha Trang and Vung Tau.

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