SINGAPORE (THE BUSINESS TIMES) – The Ascott will spend S$210 million to acquire two properties in France and Vietnam through the Ascott Fund Serviced Residence Global Fund (ASRGF), its private equity fund with Qatar Investment Authority.

The wholly-owned lodging business unit of CapitaLand has entered into two agreements to acquire the two properties on a turnkey basis. They are projected to open in 2024, CapitaLand said in a bourse filing on Monday.

Ascott will acquire a freehold asset in Paris, which will be refurbished and fall under its lyf brand, making it Ascott’s first co-living property in Europe. Named livelyfhere Gambetta Paris, the 139-unit property is located in the 20th arrondissement, near galleries, cinemas, cafés and restaurants, street art and music venues.

Ascott will also acquire the 364-unit Somerset Metropolitan West Hanoi. The asset is located in Hanoi’s new central business district and is close to several government agencies as well as local and international corporations. The property is also a 10-minute drive to the Vietnam National Convention Centre and half-an-hour drive to the Noi Bai International Airport.

The acquisitions will raise Ascott’s total fund assets under management (FUM) to about S$8 billion, it said. There will also be eight properties under the ASRGF with close to 1,700 units.

CapitaLand’s chief executive for lodging Kevin Goh said: “ASRGF and our sponsored hospitality trust, Ascott Residence Trust are key investment platforms to grow our FUM in a capital-efficient manner.”

He noted that the group is seeing strong growth momentum from fee-related earnings generated through the management of its private fund and the listed hospitality trust, as well as recurring fees earned from asset management and property management.

Mak Hoe Kit, managing director of ASRGF and head of business development at Ascott, said the first ASRGF-owned property that was divested outperformed the expectation of its underwriting.