Qatar Investment Authority (QIA) and Ascott’s Serviced Residence Global Fund are set to invest US $137 million in assets in Paris and Tokyo.
The fund has acquired two prime properties in Paris and Tokyo for $104 million, adding Citadines Suites Champs-Élysées Paris – former private residence of Hennessy family – and Somerset Shinagawa Tokyo to the portfolio.
A further investment of $33 million will convert the office building in Paris into a luxury serviced residence, and will embark on asset enhancement to reposition the serviced residence in Tokyo, bringing the total investment to $137 million.
Ascott CEO Lee Chee Koon said: “Demand for accommodation is growing faster than supply as tourist arrivals in Greater Paris rose by 11.7% to 22.4 million between 2003 and 2014 while room supply increased by only 5.3%."
The $600 million serviced residence global fund was created in July 2015 and is a 50:50 joint venture with QIA.
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The fund invests in serviced residences and rental housing properties with an initial focus on Asia Pacific and Europe.
“In the past two years, Japan saw record-breaking visitor arrivals, an uptrend that is set to continue,” Koon added.
The 70-unit Citadines Suites Champs-Élysées Paris is scheduled to open in 2018.
The serviced residence operating as Somerset Shinagawa Tokyo will undergo asset enhancement to reposition the property with additional apartments, with completion expected by the end of 2016.
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