CLI has announced that they have finalized their first deal with commitments from institutional investors in Europe and Asia. CLI will hold a 20% sponsorship stake in the fund, while the remaining 80% will belong to third-party institutional investors.
Clara II, CLI’s second private fund, targets serviced apartments and co-living spaces. The company states that this fund will closely collaborate with Ascott, CLI’s wholly-owned lodging unit, in operations, sales, and marketing.
CLI highlights the growing interest from investors in the serviced apartment and co-living segment, due to its stable financial performance, even during the COVID-19 pandemic. This segment generates consistent income from long-term stay guests as well as flexible accommodation for short-term stays.
Kevin Goh, CEO of CLI Lodging and Ascott, stated: “We are in a strong financial position to capture investment opportunities and inject quality assets into our private funds.”
Initially, the fund will acquire two co-living properties in Singapore and Tokyo from Ascott, under the “lyf” brand. These properties will open to customers later this year.
Goh added: “Investors will benefit from the strong demand for accommodation as international travel continues its upward trajectory.” He also mentioned that the company sees potential in establishing more funds in other regions, such as Europe.
As of September 2023, CLI manages real estate assets worth SGD 133 billion (equivalent to USD 98 billion) and co-invests in real estate funds worth SGD 90 billion. Their asset types include retail, office, business park, data center, and various others.
