-- CLARA II and its co-investors have acquired a prime mixed-use asset in Tokyo, Japan at over JPY30 billion. This is CLARA II’s third asset and second in Japan. Based on latest capital commitments, CLI’s funds under management will also increase by approximately S$470 million as a result.
CapitaLand Investment Limited (CLI), a leading global real asset manager, has secured fresh capital commitments from new and existing institutional investors for its value-add lodging private fund, CapitaLand Ascott Residence Asia Fund II (CLARA II). This reflects the continued strong investor interest in the fund’s strategy to reposition underutilised assets into high-performing living assets in key Asia Pacific gateway cities.
CLARA II and its co-investors have acquired a prime mixed-use asset in Tokyo, Japan at over JPY30 billion. This is CLARA II’s third asset and second in Japan. Based on latest capital commitments, CLI’s funds under management will also increase by approximately S$470 million as a result. CLI holds about 20% stake in the fund as part of its asset-light strategy and to maintain strong alignment of interests with its capital partners.
Mr Kevin Goh, CEO of CLI Lodging, said: “With over 40 years of lodging experience and our strong foothold in Asia, we have built up significant scale along with deep investment and operational expertise in the region. Our on-the-ground teams bring strong market insights that enable swift execution and speed-to-market. Investors also value CLI’s expertise in the living sector, having pioneered the serviced residence concept in Asia Pacific. The additional capital commitments reinforce CLI’s reputation as a trusted steward and the continued strong investor interest in serviced residences, which have proven to be a resilient asset class with the ability to deliver attractive yields.”
“With CLARA II, we are focused on refurbishment and conversion to maximise the value of their assets. Amid the global uncertainties, market dislocations in the hospitality sector have also created more opportunities for value-add and repositioning. By leveraging CLI’s lodging business unit, The Ascott Limited’s (Ascott) trusted brand reputation as well as global sales and marketing network, we are able to enhance the value of the assets under our lodging funds and deliver high-quality returns. The flex-hybrid model of our serviced residences, which caters to different lengths of stays, gives us a unique advantage. Long-stay guests provide income stability while short-stay guests allow us to capture the upside and optimise revenue,” added Mr Goh.
The additional capital commitments reinforce CLI’s reputation as a trusted steward and the continued strong investor interest in serviced residences, which have proven to be a resilient asset class with the ability to deliver attractive yields.
- Mr Kevin Goh, CEO of CLI Lodging
Mr Kevin Goh, CEO of CLI Lodging
lyf Shibuya Tokyo achieved over 70% occupancy within three months of opening, demonstrating CLI's ability to transform underutilised assets into high-performing lodging investments
Mr Mak Hoe Kit, Managing Director, Lodging Private Equity Funds, CLI
Mr Mak Hoe Kit, Managing Director, Lodging Private Equity Funds, CLI, said: “Japan is one of Asia’s most developed and liquid real estate markets, supported by deep capital pools. Leveraging our local expertise, we secured this off-market opportunity at an attractive entry price. CLARA II’s earlier assets — lyf Shibuya Tokyo and lyf Bugis Singapore — have been successfully repositioned and launched. lyf Shibuya Tokyo achieved over 70% occupancy within three months of opening, demonstrating our ability to transform underutilised assets into high-performing lodging investments.”
“Through our first lodging private fund, Ascott Serviced Residence Global Fund (ASRGF), we have built a strong track record of delivering alpha, with successful divestments of lyf Ginza Tokyo and Somerset Shinagawa Tokyo at premiums above target returns. Building on this momentum, we see a growing opportunity to bring our lodging fund strategy to Europe, where demand for modern, sustainable living and hospitality assets in gateway cities like London, Paris, Berlin, Amsterdam and Barcelona continues to rise. Private capital is well-positioned to meet this demand,” added Mr Mak.
In Tokyo, Japan’s revenue per available room (REVPAR) in 2024 was 43% higher than the pre-COVID levels in 2019. The strong growth continued in February 2025 with REVPAR rising 19% year-on-year (y-o-y)[1]. The number of foreign visitors to Japan rose 28.5% y-o-y to a record 3.91 million in April 2025. The country welcomed 14.4 million visitors in the first four months of the year, a rise of 24.5%. Japan aims to almost double tourist numbers to 60 million annually by 2030.
A well-connected asset in one of Tokyo’s most popular shopping, entertainment and business districts
The prime mixed-used asset is in Shinjuku, one of Tokyo’s most popular shopping, entertainment and business districts. It currently comprises hotel, residential, as well as ancillary office and retail components. The hotel and residential components will be upgraded and converted into a serviced residence, with improved amenities to enhance guests’ experience and uplift the property’s profitability and value. Ascott will manage the 179-unit serviced residence. The property will be rebranded as Citadines Shinjuku Tower Tokyo and is set to be launched in phases from 2H 2026.
The 22-storey Citadines Shinjuku Tower Tokyo will have a mix of studio suites as well as one- to three-bedroom apartments, targeting guests with different lengths of stays. The property will cater to corporate guests on extended stay from the nearby offices as well as domestic and international leisure travellers. Citadines Shinjuku Tower Tokyo will also benefit from the Shinjuku Masterplan 2040, which will see the district attracting more business travellers as more large-scale commercial assets are developed.
Citadines Shinjuku Tower Tokyo offers a host of lifestyle, retail, dining and entertainment options in the vicinity. The nearest metro station is just a two-minute walk away, providing guests easy access to the rest of Tokyo. From the nearby Shinjuku station, guests can also travel to the rest of Japan via the country’s extensive high-speed rail network. Narita International Airport and Haneda Airport are also easily accessible from the property via train in about 70 or 40 minutes respectively. Facilities at the serviced residence will include a gymnasium, function rooms, a restaurant, a café and a laundromat.
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Note
[1] STR Data, 2025
Release ID: 89161913
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