This article is from the Australian Property Journal archive
CAPITALAND Investment Limited’s lodging business The Ascott Limited has acquired its first co-living property in Sydney, under its lyf brand.
The purpose-built 197-unit lyf Bondi Junction Sydney, was acquired in an off market deal and comes after the launch of Ascott’s lyf Collingwood Melbourne, the group’s first in Australia and eighth lyf property to open globally.
Sitting only seven minutes by car from Bondi Beach and around 7km out from the Sydney CBD, the Bondi Junction asset will comprise studio apartments targeting travelling young professionals, as well as business and leisure travellers visiting the city.
“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,” said Kevin Goh, CEO for lodging at CapitaLand Investment Limited (CLI).
Ascott is acquiring the freehold asset through the Ascott Serviced Residence Global Fund (ASRGF), in the Singapore-based fund’s third investment for 2022.
“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,” added Goh.
Facilities at the co-living property are set to include a social kitchen, co-working space, a laundrette, a bistro, rooftop gym and café and bar in the lobby.
“lyf Bondi Junction Sydney is a rare purpose-built asset in a highly sought-after location for business and tourism,” said Mak Hoe Kit, managing director for lodging, private equity funds and head of business development at Ascott.
Ascott’s lyf brand has so far proven itself resilient, with lyf one-north Singapore for example boasting an occupancy rate of around 90%, since its opening in November 2021.
While lyf Funan Singapore, which opened back in 2019, also boasts an average occupancy at nearly 90%, despite the ongoing impacts of the COVID-19 pandemic.
“We expect the coliving property to perform well as Sydney boasts a vibrant start-up ecosystem and is amongst the top gateway cities globally,” added Kit.
Following the acquisition of lyf Bondi Junction Sydney, Ascott boasts has 18 lyf properties comprising more than 3,400 units across nine countries.
lyf Bondi Junction Sydney is scheduled to open in 2024.
