Regional News

Singapore’s CapitaLand receives $835 million acquisition to enter US multifamily market

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Recently, Lendlease and First State Super, both based out of Australia, partnered to create an investment platform which plans to develop a $2 billion multifamily portfolio in the US.

And now, one of Asia’s largest real estate companies is planning a U.S. invasion of its own.

Singapore’s CapitaLand announced that it is entering the U.S. multifamily market with an $835 million acquisition of 16 apartment communities in Seattle, Portland, Los Angeles, and Denver.

This purchase won’t be the company’s only foray into U.S. multifamily. CapitaLand said that it sees serious opportunity in the U.S. multifamily market and plans to grow its portfolio beyond this initial purchase.

“The multifamily sector in the U.S. is broad, scalable and a growth sector marked with long-term secular trends. Widely regarded as one of the most resilient and liquid institutional real estate asset classes in the U.S., this multifamily portfolio offers attractive risk-adjusted returns for CapitaLand,” Lee Chee Koon, president & group CEO of CapitaLand Group, said in a release.

“While we value add to this portfolio of freehold operating assets through asset enhancement post-acquisition, we will also be looking out for more opportunities to build up a sizeable platform and strengthen our expertise in this asset class,” Koon continued.

“As the portfolio grows, we will have the option to spin off these assets into investment vehicles and partnerships,” Koon added. "Beyond expanding the long-term rental housing platform in the U.S., a market which we have ventured into since 2015, we also see potential to build this business in other fast-growing markets such as China.”

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