Ascott Residence Trust (Ascott Reit) has purchased a prime site in Singapore’s research and innovation business hub, one-north, for $62.4 million.

The 60-year leasehold land, acquired from JTC Corporation, will be used to build a development for co-living, under Ascott’s co-living brand lyf. It will offer an estimated 324 units across two residential blocks and is slated to open by 2021.

This acquisition accounts for an estimated 3% of Ascott Reit’s total asset value, and brings Ascott’s lyf brand in Singapore to three - lyf at Funan is scheduled to open in 2020, while lyf at Farrer Park is slated to open in 2021.

Ascott hopes to target millennials and young working professionals working in the one-north cluster, a 200-hectare development zoned out by the Singapore government to house research facilities in fields such as media, engineering, ICT and the sciences.

This is the first time Ascott Reit is building a property, as opposed to acquiring completed properties, says Bob Tan, chairman of Ascott Residence Trust Management Limited. He believes the move will allow the firm “to have an early entry at a lower cost [and] enjoy development profits”, bringing “higher yield” in the long term.

Lyf at one-north will be designed by architecture firm WOHA.