Global real asset management firm CapitaLand Investment Limited (CLI) recently announced that it has finalized the closing of its value-add lodging private fund, CapitaLand Ascott Residence Asia Fund II (CLARA II).

The company successfully secured over US$650 million in total equity commitments and co-investments across the fund and its associated vehicles, exceeding its initial target of US$600 million. This achievement reflects sustained investor confidence in both the lodging and living sectors and highlights CLI’s investment expertise in the Asia Pacific region.

As Andrew Lim, Group COO of CLI, stated:

“The successful close of CLARA II reflects investors’ confidence in CLI’s deep investment expertise and active asset management capabilities to execute a disciplined value-add strategy in the fast-growing lodging and living sector. We are seeing increasing investor allocations into the sector attracted by their long-term growth potential. This is underpinned by trends such as rising mobility, the surge in ‘bleisure’ travel and demand for flexible living arrangements.”

Mak Hoe Kit, managing director for lodging private equity funds at CLI, added:

“The strong support we have received from CLI’s international network of capital partners demonstrates investors’ trust in our capabilities and lodging fund strategy.”

It is anticipated that CLARA II will introduce approximately US$1.6 billion to CLI’s total funds under management, focusing on transforming underutilized assets into high-performing properties. As of now, CLARA II has committed nearly half of its equity across three holdings, including a serviced residence and coliving properties in Japan and Singapore.