Singapore realty major CapitaLand buys US rental housing assets for $835m

Marquessa Villas in Greater Los Angeles. Photo: CapitaLand website

CapitaLand, one of Singapore’s largest real estate players, has acquired 16 freehold multi-family properties in the US for a consideration of $835 million, marking its foray into the asset class.

The move takes CapitaLand’s investment in the US to over $1.5 billion.

According to a company release, the portfolio addition comprises 3,787 apartment units in the suburban communities of metropolitan areas in Seattle, Portland, Greater Los Angeles and Denver.

The latest portfolio addition will expand CapitaLand’s presence to more than 6,500 units in the US market.

The price per unit of the portfolio is $220,000, with Class B3 properties in suburban regions operating at over 90% average occupancy with an average length stay of two years.

Lee Chee Koon, President & Group CEO, CapitaLand Group said: “The multifamily sector in the U.S. is broad, scalable and a growth sector marked with long-term secular trends.”

“We will also be looking out for more opportunities to build up a sizeable platform and strengthen our expertise in this asset class,” he said.

Lee added that CapitaLand will explore spinning off these assets into investment vehicles and partnerships as its portfolio grows. CapitaLand also sees potential in building this business into fast-growing markets like China.

“This latest acquisition in the U.S. would expand CapitaLand’s global investment portfolio, diversify our business outside of our two core markets of Singapore and China and allow us to grow new businesses. It also enables us to diversify our investment property portfolio into developed markets as we continue to scale up our presence in our core emerging markets of China and Vietnam,” Lee said.

CapitaLand first entered the US market in August 2015, and has since acquired five properties in Manhattan, New York and Silicon Valley via Ascott and its REIT, Ascott Residence Trust.

In addition to its portfolio of hotels in the US, Ascott also owns a majority stake in Synergy Global Housing (Synergy), which offers apartments for corporate lease. Synergy has close to 1,500 units in the US with a strong presence in the West Coast including Los Angeles, Orange County, San Diego, Seattle and New York.

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.