Singapore: GIC-backed Greystar realty fund acquires US Monogram in $4.4b deal

Photo: Bloomberg

Singapore’s sovereign wealth fund (SWF) GIC has partnered Greystar Real Estate Partners by way of an investment in the Greystar Growth & Income Fund (GGIF) LP, a perpetual-life fund.

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.

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Singapore Reporter/s

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

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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.