Mapletree Investments has raised US$535m (€496m) for a student accommodation fund that owns US$1.3bn of assets in the UK and the US.
Mapletree, the property investment arm of Singapore state-owned company Temasek, will retain a 35% stake in the portfolio of more than 14,000 student beds located in 22 cities.
Major investors in the Mapletree Global Student Accommodation Private Trust (MGSA P-Trust) include The Great Eastern Life Assurance Company, DBS Bank and UBS, which are are all investing on behalf of high-net-worth clients.
About US£195m was raised for the 5,910-bed UK portfolio and US$291m for the 8,363-bed US portfolio.
The trust has a five-year term, with provision for a one-year extension. It is the first fund of its kind to be launched in Singapore.
Mapletree said the fund offers investors an opportunity to invest in attractive and resilient income-producing assets.
The company first entered the global student housing market one year ago, buying 25 student accommodation assets, comprising 5,500 beds in the UK for a reported £417m.
It made its debut US deal last November, acquiring seven student accommodation assets in six states in the US from Kayne Anderson Real Estate Advisors.
Hiew Yoon Khong, Mapletree’s group chief executive, said: “The successful close of MGSA P-Trust is testament to investors’ confidence in Mapletree’s track record of delivering the desired return levels.
“Mapletree will continue to develop innovative real estate investment products that cater to the varying investment needs and risk-return profiles of investors.
“In the case of MGSA P-Trust, investors will be able to reap strong returns from an asset class proven to be relatively anti-cyclical in nature, with the pursuit of higher education growing worldwide, even during economic downturns.”