The Ascott Limited (Ascott) has entered into a 50:50 joint venture with Qatar Investment Authority (QIA) to set up a US$600 million serviced residence fund with an initial focus on the Asia Pacific and Europe regions.
QIA is a global investment institution and a preferred partner of choice for investors, financiers and other stakeholders. Through the partnership in serviced residences, Ascott and QIA will each contribute US$300 million of equity funds to the joint venture.
The fund will invest in serviced residences or rental housing properties with an initial focus on the Asia Pacific and Europe regions, for a term of 10 years with an investment period of three years. It will invest in development, redevelopment and turnkey opportunities, as well as acquire suitable projects for asset enhancement, repositioning or conversion into serviced residences and rental housing properties. Subject to pre-existing contractual obligations that Ascott has, the fund will have exclusive rights over deals that are available to Ascott during the fund’s investment period. The joint venture will also grant Ascott a first right to manage the properties that it acquires.