UNITED STATES - JP Morgan Asset Management has setup a $726m (€498.6m) joint venture with Apartment Investment and Management Company to gain a co-ownership of three apartment complexes in West Los Angeles.

JP Morgan officials say they regard the Los Angeles apartments market as "very favourable" and believe the region has been a location with higher than average population and job growth, and with low housing affordability - producing higher than average rent growth and strong income growth.

Total equity in the joint venture in $430m but JP Morgan holds 47% ownership thanks to its $202m equity investment while Apartment Investment and Management will hold the other 53%.

JP Morgan made its investment in the relationship for its core open-ended commingled fund, the JP Morgan Strategic Property Fund, to buy three apartment complexes in West Los Angeles totaling 1,382 units in West Los Angeles.

The apartments were built in phases between 2002 to 2004 and overall occupancy of the three properties is 96%.

This venture is the first time that JP Morgan and Apartment Investment and Management have completed a transaction together but the asset manager went for the deal because they are seen as high quality properties and says it would like to do more business with the real estate firm in the future.