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Ascott knocks on China’s online property rental doors

SINGAPORE — Ascott, CapitaLand’s wholly owned serviced residence unit, is leading a consortium to invest S$67.69 million in the latest fund-raising by Tujia, as China’s equivalent of the property-rental site Airbnb pursues financing for a global expansion.

SINGAPORE — Ascott, CapitaLand’s wholly owned serviced residence unit, is leading a consortium to invest S$67.69 million in the latest fund-raising by Tujia, as China’s equivalent of the property-rental site Airbnb pursues financing for a global expansion.

The investment is part of the US$300 million (S$413 million) funding that Tujia raised from a group of investors, including Hong Kong-based All-Stars Investment, which also backs Chinese smartphone maker Xiaomi and taxi hailing app Didi Kuaidi.

The latest funding values the company at more than US$1 billion, Tujia said, without disclosing the size of the stake the investors bought. Airbnb, which operates around the world, is valued at US$20 billion.

In a separate statement yesterday, CapitaLand said it will also form a joint venture with an initial capital of S$54.15 million with Tujia to operate and franchise serviced apartments in China.

Mr Lee Chee Koon, Ascott’s CEO, who has been appointed to Tujia’s board of directors, said: “China’s lengthening list of billion-dollar technology startups is an indication of investors’ confidence in the country’s booming internet sector … By investing in Tujia, a frontrunner in the online apartment-sharing platform, Ascott is now well positioned to benefit from this growth.”

Tujia, which means “home on a journey,” is expanding into Asian destinations popular with Chinese travellers, said Ms Melissa Yang, the co-founder and chief technology officer. Tujia expects to list 400,000 to 500,000 properties by year’s end, from more than 300,000 now. Its main target markets include Thailand, Indonesia, South Korea, Taiwan and Hong Kong, though Tujia already connects homeowners with vacationers as far afield as Paris and Los Angeles.

Tujia, which often draws comparisons with Airbnb, will be adding a new service that links users directly with homeowners, Ms Yang said, drawing it still closer to its US counterpart. Agencies

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