CapitaLand Investment expands fund with Japan asset acquisition at 30 billion yen
[SINGAPORE] CapitaLand Investment (CLI) on Monday (Jun 9) announced that it secured additional capital commitments from new and existing institutional investors for its value-add lodging private fund, CapitaLand Ascott Residence Asia Fund II (Clara II).
The latest fundraising includes the acquisition of a prime mixed-use asset in Tokyo at more than 30 billion yen (S$267.2 million). This is Clara II's third asset, and its second in Japan.
As a result, CLI's funds under management will increase by around S$470 million, as it holds about 20 per cent stake in the fund.
'This reflects the continued strong investor interest in the fund's strategy to reposition under-utilised assets into high-performing living assets in key Asia-Pacific gateway cities,' the company said.
Japan is one of Asia's most developed and liquid real estate markets, supported by deep capital pools, said Mak Hoe Kit, CLI managing director of lodging private equity funds.
'Leveraging local enterprise, we secured this off-market opportunity at an attractive entry price,' he added.
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Mak also noted that through their first lodging private fund, they achieved strong performance in Japan with the divestments of two assets at premiums above target returns.
Japan's strong tourism rebound further supports the fund's investment strategy. In Tokyo, revenue per available room (RevPar) in 2024 was 43 per cent higher than pre-pandemic levels in 2019, with growth continuing into 2025.
Meanwhile, the number of foreign visitors to Japan also surged, rising 28.5 per cent on year to a record 3.9 million in April.
The prime mixed-used asset
The newly acquired asset is located in Shinjuku, one of Tokyo's most popular districts for shopping, entertainment and business.
As part of Clara II's value-add strategy, the property – currently comprising hotel, residential, and ancillary office and retail components – will be upgraded and repositioned into a 179-unit serviced residence managed by Ascott, CLI's lodging business arm.
It will be rebranded as Citadines Shinjuku Tower Tokyo and launched in phases from the second half of 2026.
The 22-storey building will feature a mix of studio suites and one to three-bedroom apartments, for both short and long-stay guests. It aims to cater to corporate guests on extended stay from nearby offices, as well as domestic and international travellers.
In Japan, CLI has a diversified portfolio of more than 70 lodging, office, logistics and self-storage properties across nine cities including Tokyo, Osaka and Nagoya.
Shares of CLI closed 0.8 per cent or S$0.02 higher at S$2.56 on Friday.
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