Operator behind Dubai's Citadines acquires $139m Sydney property

Ascott's properties in the Middle East include Ascott Corniche Al Khobar, Somerset Downtown Al Khobar, Ascott Villas Riyadh

The company also signed 13 properties under franchise and management contracts.
The company also signed 13 properties under franchise and management contracts.

Singapore-based serviced residence operator The Ascott Limited, which is a fully-owned business unit of CapitaLand, has announced the signing of 13 properties under franchise and management contracts, and has acquired a $139m (AED509m) freehold serviced residence in the Central Business District of North Sydney through the Ascott Serviced Residence Global Fund (ASRGF), raising its total asset value to $7.3bn (AED26.8bn).

As part of its continued global expansion into the Middle East, Africa, and Turkey region, Ascott has 26 properties in 12 cities – both operational and in the pipeline – which include Ascott Corniche Al Khobar, Somerset Downtown Al Khobar, and Ascott Villas Riyadh in Saudi Arabia; Citadines Al Ghubrah Muscat in Oman; Somerset City Centre Atyrau in Kazakhstan; Citadines Maslak Istanbul in Turkey; and Citadines Culture Village Dubai in the UAE.

The acquired Sydney freehold serviced residence named Citadines Walker North Sydney – the tallest tower in North Sydney when completed in 2021 – will be part of a 48-storey integrated development that has office and retail components. 

ASRGF has also invested in Citadines Islington London, which will open this November; and lyf Funan Singapore, which started operations in September 2019.

Commenting on the Sydney acquisition, chief executive officer at Ascott, Kevin Goh, said: “This latest acquisition in Australia is in line with our strategy of growing our fund management portfolio through private equity funds, joint ventures, and listed hospitality trusts – all of which provide a core asset base for our asset management business.”

Goh added: “We believe in achieving scale in the business, and fund management is central to the active capital management strategy of Ascott as a dominant lodging real estate player. Ascott enjoys deep presence in many key gateway cities, across various lodging segments, from serviced residences, hotels, coliving apartments to leasing apartments.”

Ascott has reached a total of more than 112,000 units in more than 700 properties, on track to meet its global target of 160,000 units by 2023.

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