The global real estate equity investment arm of insurer AIG has set up a $1.5bn (€1.3bn) US multifamily investment platform with a “leading sovereign wealth fund”.
AIG Global Real Estate said the new venture has been seeded with a $690m portfolio consisting developed and owned by AIG. The portfolio consists of seven existing communities with 2,105 apartment units.
AIG Global Real Estate will be responsible for the sourcing and management of the joint venture.
Doug Tymins, president and CEO, AIG Global Real Estate, said: “Recent employment trends and changing housing dynamics have caused multifamily assets to continue to offer compelling risk-adjusted returns.
“This investment is representative of AIG Global Real Estate’s strategy of investing in areas and structures in sought-after markets with high-growth potential. We look forward to further expanding our multifamily portfolio with this new strategic investor.”
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