CapitaLand Investment Limited (CLI), a global real asset manager, has announced securing additional capital commitments for its CapitaLand Ascott Residence Asia Fund II (CLARA II). This move underscores strong investor interest in transforming underutilised assets into high-performing living spaces in key Asia Pacific cities. CLARA II, alongside its co-investors, has acquired a prime mixed-use asset in Tokyo for over JPY30 billion, marking its third asset acquisition and second in Japan.
The acquisition will increase CLI’s funds under management by approximately S$470 million. Kevin Goh, CEO of CLI Lodging, highlighted the company’s extensive lodging experience and market insights, stating that the new capital commitments reinforce CLI’s reputation in the serviced residence sector. “Investors value CLI’s expertise in the living sector, having pioneered the serviced residence concept in Asia Pacific,” Goh noted.
The Tokyo asset, located in the bustling Shinjuku district, will undergo refurbishment to convert its hotel and residential components into a serviced residence managed by Ascott. The property, to be rebranded as Citadines Shinjuku Tower Tokyo, will offer a mix of studio suites and flats, catering to both corporate and leisure travellers.
Mak Hoe Kit, Managing Director of Lodging Private Equity Funds at CLI, emphasised Japan’s robust real estate market and the strategic advantage of securing the asset at an attractive price. He also mentioned plans to expand CLI’s lodging fund strategy to Europe, where demand for modern living spaces is rising.
The Shinjuku property is set to launch in phases from the second half of 2026, benefiting from the Shinjuku Masterplan 2040, which aims to attract more business travellers.
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