Australia: The Ascott Limited (Ascott) is acquiring its first lyf-branded coliving property in Sydney.
The acquisition of the freehold asset is made via the Ascott Serviced Residence Global Fund (ASRGF), Ascott’s private equity fund with Qatar Investment Authority.
This is ASRGF’s third investment in 2022, following the acquisition of Somerset Hangzhou Bay Ningbo and Citadines Canal Amsterdam in March 2022. To date, ASRGF has invested in 12 properties for close to US$500 million.
To be named lyf Bondi Junction Sydney, the 197-unit coliving property is scheduled to open in 2024 and is “set to meet the lodging needs of transient young professionals, business and leisure travellers in the city”.
The coliving property is located in Bondi Junction, Sydney’s fifth largest business district and one of the city’s most affluent residential areas.
Kevin Goh, chief executive officer for lodging at Ascott’s parent company CLI, said: “As a vertically-integrated global lodging business with a strong foothold in Asia, Ascott is able to leverage our full suite of real estate investment and management capabilities to add another quality asset to ASRGF’s portfolio. lyf has proven to not only be a popular but resilient brand. lyf one-north Singapore, owned by Ascott Residence Trust, has a strong occupancy rate of about 90 per cent since its opening in November 2021. lyf Funan Singapore, which is owned by ASRGF, opened in 2019 and it also enjoys a robust average occupancy rate of almost 90 per cent, outperforming its peers despite COVID-19.”
Goh added: “With the short supply of professionally-managed coliving properties in Australia, Ascott is set to raise the bar for the coliving sector as we expand the lyf brand in the country. We continue to see attractive opportunities to grow our lyf brand through our private funds and Ascott Residence Trust as well as via management contracts.”
Mak Hoe Kit, Ascott’s managing director for lodging private equity funds and head of business development said: “Tapping our strong deal sourcing capabilities and extensive business network, we were able to access this attractive off-market acquisition. lyf Bondi Junction Sydney is a rare purpose-built asset in a highly sought-after location for business and tourism. We expect the coliving property to perform well as Sydney boasts a vibrant start-up ecosystem and is amongst the top gateway cities globally. Most of ASRGF’s investments are off-market and sourced via our global presence and strong business development teams on the ground. This, combined with our expertise across the full value chain of investment, asset and fund management as well as award-winning lodging operations, enables us to drive returns from divestments that exceed expected underwriting. As the full deployment of ASRGF draws near, we continue to seek like-minded capital partners to invest in other coliving and serviced residence opportunities, which have proven to be resilient.”
The first lyf property in Australia opened last month in the Melbourne suburb of Collingwood.
