SINGAPORE – The Ascott, CapitaLand Investment‘s (CLI) lodging business unit, and CapitaLand Wellness Fund have jointly acquired a freehold hotel, with each holding a 50 per cent stake in the property.

While CLI did not disclose the hotel name and consideration price on Jan 9, Mingtiandi reported on Jan 7 that Hong Kong-based private equity firm Gaw Capital Partners has completed the sale of Hotel G, a 308-unit budget hotel in Bugis, to CLI’s lodging unit at just under $240 million.

CLI said that the property will be upgraded and rebranded as lyf Bugis Singapore in mid-2024 under Ascott’s co-living brand lyf. It will remain operational throughout the renovation period.

The acquisition of lyf Bugis Singapore will expand the brand’s presence in Singapore to a total of four properties, in addition to lyf one-north Singapore, lyf Funan Singapore and lyf Farrer Park Singapore, CLI said.

“It will also grow Ascott’s portfolio in Singapore to over 4,700 units across 25 properties,” it added, noting that Ascott aims to grow its lyf portfolio to 150 properties with more than 30,000 units by 2030.

CapitaLand Wellness Fund, which owns half of lyf Bugis Singapore, is CLI’s first wellness and healthcare-related real estate fund in South-east Asia, with a target fund size of $1 billion.

CLI said that lyf Bugis Singapore will focus on health and active wellness.

Ms Patricia Goh, chief executive of South-east Asia investment at CLI, highlighted that the Bugis-Bras Basah precinct has the potential to become a wellness hub.

“Together with the other CLI-managed properties in the precinct, we now have the unique opportunity to develop an integrated wellness hospitality ecosystem that meets the growing demand for wellness and healthcare-related tourism.”

CLI shares closed four cents higher at $3.05 on Jan 9. THE BUSINESS TIMES