On Oct 1, CLAS’ manager announced the proposed acquisition of lyf Funan from Ascott Serviced Residence Global Fund (ASRGF) at an agreed property value of $263 million. CLAS’ sponsor, The Ascott Limited (Ascott), holds a 50% stake in ASRGF. Of the agreed value, $146.4 million will be funded by proceeds from the sale of Citadines Mount Sophia which was divested in March this year for $148 million, at an exit Ebitda yield of 3.2%. The remaining amount will be from debt priced at 3.5%.
“lyf is a fast-growing brand within the sponsor’s portfolio. It represents hospitality demand that is experience-led. The vibes are different. Guests come out of their rooms to bond over activities such as cooking, laundry, exercising, as well as specially curated community activities,” Serena Teo, CEO of CapitaLand Ascott Trust (SGX:HMN
) ’s (CLAS) manager, describes during an interview at lyf Funan Singapore (lyf Funan).
The 329-room lyf Funan, which opened in 2019 is in the heart of Singapore’s Civic District and connected to City Hall MRT, an interchange station via an airconditioned underpass. “It’s got excellent connectivity, with direct underground access to one of the major transport hubs,” Teo continues. lyf Funan (lyf stands for live your freedom) has a hotel licence which enables it to cater to a wide range of guests from short to extended stays.
