CapitaLand's unit the Ascott will be investing S$170.3 million to develop co-living space at Singapore's prime property Funan.
The Ascott through its serviced residence global fund Qatar Investment Authority will invest in the serviced residence component of the Funan integrated development, which will be named lyf Funan Singapore.
Located in Singapore's Civic & Cultural District at 109 North Bridge Road, Funan is an integrated development and comprises a six-storey retail podium.
The deal, which is expected to be completed in the fourth-quarter, will result in buyer paying for all development costs in relation to Funan's serviced residence thereafter.
The sale is expected to generate for CapitaLand Mall Trust proceeds of about S$101.8 million and a net gain of about S$20.6 million, the company said in a statement.
lyf Funan Singapore is Ascott's fifth acquisition under its serviced residence global fund with committed equity of S$809 million.
Besides Singapore and China, Ascott is actively looking at other potential markets including Australia, France, Germany, among others.
Shares in CapitaLand rose 2.4 percent to S$3.83 while CapitaLand Mall Trust gained 0.50 percent at S$2.03 on the Singapore Exchange.
