Thursday, 6 November 2025
CapitaLand Investment Limited (CLI) has closed its value-add lodging private fund, CapitaLand Ascott Residence Asia Fund II (CLARA II), after securing more than US$650 million in equity commitments and co-investments, exceeding its initial target of US$600 million. The new capital will contribute roughly US$1.6 billion to CLI’s total funds under management.
The fund attracted participation from both new and returning global institutional investors, including pension funds and financial institutions across Asia, Europe, and North America. CLI retains a 20 percent sponsor stake, maintaining alignment with investors.
CLARA II focuses on value-add opportunities in the living and lodging sector within major Asia-Pacific cities. Its strategy centres on redeveloping or repositioning underutilised assets to improve operational and financial performance. The fund collaborates closely with CLI’s lodging arm, The Ascott Limited, which manages and brands many of its assets.
Approximately half of the fund’s capital has already been deployed across three properties: lyf Shibuya Tokyo and Citadines Shinjuku Tower Tokyo in Japan, and lyf Bugis Singapore. The Tokyo properties were acquired in 2024 and repositioned under the lyf and Citadines brands, with refurbishments aimed at improving energy efficiency and flexibility for short- and long-stay guests.
According to Andrew Lim, Group Chief Operating Officer at CLI, the fund’s closure demonstrates investor confidence in the firm’s investment and asset management capabilities. “Investor interest in the living and lodging sector continues to grow, driven by urban mobility, hybrid travel, and flexible housing trends,” he said.
Mak Hoe Kit, Managing Director of Lodging Private Equity Funds at CLI, noted that the strong response from investors reflects trust in CLI’s long-term strategy. “Our experience in repositioning and managing lodging assets across their full life cycle has been key to creating value,” he said, citing prior successes such as lyf Ginza Tokyo and lyf Funan Singapore, both of which achieved returns above initial expectations.
The launch of CLARA II builds on the performance of CLI’s first lodging fund and marks a continuation of its focus on developing and managing targeted investment vehicles within Asia’s urban accommodation sector.
