Singapore-listed real asset manager CapitaLand Investment Limited ( CLI ) 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 ).

Clara II and its co-investors have acquired a prime mixed-use asset in Tokyo for over 30 billion yen ( US$207.69 million ). This is Clara II’s third asset and second in Japan. Based on the latest capital commitments, CLI’s funds under management will also increase by approximately S$470 million ( US$365.29million ) 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.

Kevin Goh, chief executive officer of CLI Lodging, comments: “With Clara II, we are focused on refurbishment and conversion to maximize 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 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.”

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 the second half of 2026.

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. 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.

In Japan, CLI has a diversified portfolio of over 70 lodging, office, logistics, and self-storage properties across nine cities including Tokyo, Kanagawa, Osaka, Nagoya, Kyoto, Fukuoka, Hiroshima, Kobe, and Sapporo.

Ascott will manage the Citadines Shinjuku Tower Tokyo. ( CLI )