CapitaLand forms US$300 million joint venture to scale multifamily asset portfolio in the USA

SINGAPORE - Dec. 6, 2020 - PRLog -- CapitaLand has formed a programmatic joint venture to scale its multifamily asset portfolio in the United States of America (USA). Through the joint venture, CapitaLand will have a strategic arrangement with its joint venture partner to acquire and develop multifamily assets totalling US$300 million (S$416.1 million) in gross asset value. The joint venture partner is an Austin-headquartered real estate investment, development and property management firm. The joint venture will invest in multifamily assets in the Southeast and Southwest markets of the USA, with an initial focus on Austin, Texas.

CapitaLand and its partner have acquired a freehold land parcel in the high growth, technology-driven city of Austin to develop the joint venture's first multifamily project. CapitaLand holds an 80% stake in the project while its partner holds the remaining 20%. The 4.71-acre land parcel will be developed into a modern, mid-rise and green 341-unit suburban multifamily property, expected to be completed in 2023. CapitaLand's partner has developed over 25,000 multifamily units across high growth and resilient markets in the USA since its inception 25 years ago.

Mr Jason Leow, President, Singapore & International, CapitaLand Group, said: "Development is one of CapitaLand's key strategic growth pillars, along with lodging and fund management. CapitaLand's acquisition of this prime site to develop our first multifamily property in Austin and having a potential pipeline of projects in the Southeast and Southwest markets of the USA will accelerate CapitaLand's growth in the resilient multifamily sector. It adds to our current portfolio of 16 freehold suburban multifamily properties which we acquired in 2018, strengthening CapitaLand's presence and track record in the market. We will continue to seek attractive investment opportunities to build upon our diversified and well-balanced portfolio to deliver long-term value for our stakeholders."

Mr Dang Phan, Managing Director for USA, CapitaLand International said: "Since the acquisition of our suburban multifamily portfolio in 2018, we have value-added to the assets through progressive refurbishment to enhance returns. Our multifamily properties have remained resilient and achieved a current committed occupancy rate of about 95%. Across the USA, multifamily rents have recovered faster than other asset types during the past recessions. Prior to COVID-19, allocation of investment capital towards the multifamily sector has exceeded that of other property types and the pandemic has accelerated this preference. Growing our investment in the resilient, liquid and stable-yielding multifamily portfolio will provide income stability."

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