The Qatar Investment Authority and Ascott’s Serviced Residence Global Fund are reportedly planning to invest $137 million in assets in Paris and Tokyo.
The fund has acquired two prime properties in Paris and Tokyo for $104 million, adding Citadines Suites Champs-Élysées Paris–the former private residence of Hennessy family (slated to open in 2018)–and the newly opened Somerset Shinagawa Tokyo to the portfolio.
A further investment of $33 million will convert the Parisian office building into a luxury serviced residence, and will launch asset enhancement to reposition the serviced residence in Tokyo, bringing the total investment to $137 million.
“Demand for accommodation is growing faster than supply as tourist arrivals in Greater Paris rose by 11.7 percent to 22.4 million between 2003 and 2014 while room supply increased by only 5.3 percent," Ascott CEO Lee Chee Koon told Hotelier Middle East.
The $600 million serviced residence global fund was created in July 2015 and is a 50:50 joint venture with QIA.