Real estate firm CapitaLand on Monday said its unit Ascott will buy an 80% stake in U.S.-based accommodation provider Synergy Global Housing for S$46.7 million.
The acquisition will expand Ascott's footprint in the U.S. and will triple its portfolio from over 1,000 units to about 3,000 units in the U.S., it said in a release.
Ascott is a Singapore-based serviced residence owner-operators, with brands such as Citadines, Somerset and Quest.
"The U.S. is Ascott's third largest source market for guests. This acquisition will give us direct access to Synergy's corporate customers in the U.S. that include worldrenowned technology brands in the Bay Area and beyond," Ascott's Chief Executive Officer Lee Chee Koon said in a release.
The deal is expected to complete in the third quarter of 2017.
Upon completion, Synergy will become an 80 percent-owned subsidiary of CapitaLand.
Shares of CapitaLand fell 0.3 percent to S$3.73 at 0433 GMT on the Singapore Exchange.