In alignment with this, GGIF has completed the acquisition of Monogram, operator of high-end apartment communities in the US, for a total transaction value of approximately $4.4 billion.
As of 30 June 2017, Monogram’s portfolio includes investments in 48 multifamily communities in 10 states comprising 13,438 apartment homes.
Lee Kok Sun, Chief Investment Officer and Regional Head, Asia for GIC Real Estate, said, “We are pleased to establish our partnership with Greystar with this acquisition. The U.S. multifamily sector’s positive supply-demand dynamics and Monogram’s high-quality assets in attractive markets provide a valuable seed portfolio that fits well with the venture’s long-term strategy and Greystar’s management capabilities.”
Greystar Real Estate Partners is a fully-integrated multi-family real estate company offering expertise in investment management, development and property management of rental housing properties globally.
Other initial founding capital partners in the Greystar-led fund include the affiliates of APG Asset Management N.V., Ivanhoé Cambridge and PGGM.
GGIF will leverage Greystar’s operating platform to acquire multifamily assets in US markets, which will provide GIC and other institutional investors with long-term stable income through the acquisition of multifamily investments in markets across the US.
Additionally, GIC has entered into a joint venture (JV) with Tokyo-listed Invincible Investment Corporation, a public hotel and residential J-REIT, to acquire Sheraton Grande Tokyo Bay Hotel for approximately JPY 100 billion ($909.1 million ), with GIC having the majority stake of 51 per cent.
Built in 1988, Sheraton Grande Tokyo Bay Hotel is a 1,016-room hotel which includes a 175-room Annex Tower opened in December 2016, located adjacent to Tokyo Disney Resort (TDR) and its largest “Official Hotel”, out of six such hotels. Since opening, the hotel has remained popular among its domestic and inbound customer base.
According to GIC, Sheraton Grande Tokyo Bay Hotel has shown strong and resilient cash-flows due to its close proximity to TDR, making it an attractive investment.