Singapore’s CapitaLand has formed a $300m (€247m) joint venture with an unnamed US real estate manager to broaden the former’s multifamily exposure.
CapitaLand first entered the US multifamily market with an $835m acquisition in 2018.
The company did not disclose the identity of its Austin-headquartered partner, except to say that it has developed more than 25,000 multifamily units across high growth and resilient markets in the US since its inception 25 years ago.
The joint venture will initially focus on Austin where CapitaLand has already acquired a 4.71-hectare site for a 341-apartment complex.
CapitaLand holds an 80% stake in the project, which is scheduled for completion 2023, and its US partner holds the remaining 20%.
Jason Leow, president, Singapore and International, CapitaLand, said this partnership was formed to drive the group’s growth in the American multifamily sector.
Apart from the Austin project, Leow said CapitaLand had a potential pipeline of projects in the Southeast and Southwest markets of the US.
Currently, CapitaLand has a portfolio of 16 suburban multifamily properties offering more than 3,700 apartments in suburban communities of the metropolitan areas of Seattle, Portland, Greater Los Angeles and Denver.
Dang Phan, managing director for USA, CapitaLand International said: “Our multifamily properties have achieved a current committed occupancy rate of about 95%.“
Phan said growing the group’s investment in the resilient, liquid and stable-yielding multifamily portfolio would provide income stability.
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