The Ascott, a Singapore-based serviced residence owner-operator, has agreed to acquire a serviced apartment scheme in north London for $74m (£52m) with through a global fund set up with the Qatar Investment Authority (QIA).
The hospitality scheme, which will operate as Citadines Islington London, will provide 108 serviced apartments.
Developed by Sager Group, in association with Cain Hoy, Sager House (Almedia), Islington Square is the transformation of the former Royal Mail’s North London mail centre into a new $658 million (£450m) 4.5 acre mixed use destination for London providing 263 new homes and 170,000 sqft of retail and leisure facilities.
Ascott, Singapore-based CapitaLand’s serviced residence business unit, entered into a joint venture with QIA in 2015 to set up a $600 million serviced residence fund with an initial focus on Asia Pacific and Europe.
The 50-50 tie up with the Gulf Arab state's sovereign wealth fund is Ascott’s largest private equity fund and invests in serviced residences and rental housing properties and has already acquired two serviced residence in Paris and Tokyo.
“Ascott’s fund with QIA provides the financial boost to support our acquisitions and growth as Ascott gears up to achieve our global target of 80,000 apartment units by 2020,” said Lee Chee Koon, Ascott’s CEO.
“Making our third acquisition within five months is a testament to Ascott’s strong alignment of interest with our capital partners. The addition of Citadines Islington London will strengthen Ascott’s position as one of the largest international serviced residence operators in Europe, with assets of over S$1.5 billion ($1.1bn).
"Our portfolio in the region will increase to more than 5,300 units in 45 properties across France, United Kingdom, Belgium, Germany, Georgia and Spain. We aim to double our portfolio in Europe to 10,000 units by 2020.”For all the latest GCC news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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