CapitaLand Investment Ltd (CLI) has secured additional capital commitments from both new and existing institutional investors for its value-add lodging private fund, CapitaLand Ascott Residence Asia Fund II (CLARA II).
The commitments come alongside the fund’s acquisition of a prime mixed-use property in Tokyo valued at over JPY30 billion (USD190 million).
The investment marks CLARA II’s third asset and its second in Japan. With the latest capital raised, CLI’s funds under management will increase by approximately S$470 million.
CLI holds a 20% stake in CLARA II, in line with its asset-light strategy and to maintain alignment with capital partners.
The Tokyo asset is located in Shinjuku, a major commercial and entertainment district. It comprises hotel, residential, office, and retail components.
Under the fund’s value-add strategy, the hotel and residential portions will be refurbished and converted into a 179-unit serviced residence.
The property will be rebranded as Citadines Shinjuku Tower Tokyo and is expected to launch in phases starting in the second half of 2026.
The development will offer a mix of studio, one-, two-, and three-bedroom apartments to accommodate a range of guest needs.
Located within a two-minute walk to the nearest metro station and close to Shinjuku Station’s high-speed rail links, the residence will target both corporate and leisure travelers.
Planned amenities include a gym, function rooms, restaurant, café, and laundromat.
The acquisition builds on CLARA II’s existing assets — lyf Shibuya Tokyo and lyf Bugis Singapore — both of which have been repositioned and launched.
lyf Shibuya Tokyo achieved over 70% occupancy within three months of opening.
Japan remains a key target market for CLI due to its liquidity and deep capital base. In 2024, Tokyo’s revenue per available room (RevPAR) rose 43% compared to 2019, with a further 19% year-on-year increase recorded in February 2025.
Foreign visitor arrivals to Japan reached 3.91 million in April, up 28.5% from the previous year, with a total of 14.4 million arrivals in the first four months of 2025.
CLI aims to leverage its operational platform and local expertise to drive value through refurbishment and repositioning opportunities.
The company has also indicated plans to expand its lodging fund strategy to European gateway cities amid growing demand for flexible, sustainable hospitality assets.
In Japan, CLI manages a diversified portfolio of over 70 lodging, office, logistics, and self-storage assets across nine cities, including Tokyo, Osaka, Kyoto, and Fukuoka.
Business News Asia