Singapore-based real estate company CapitaLand plans to take over and grow its multifamily footprint in the US. The company has formed a joint venture for the development and will invest in assets worth $300 million across the southeast and southwest US markets.
It is reported that the partner for the joint venture is from Austin and the joint venture will initially focus on Austin and Texas. The joint venture partner specialises on real estate management, development and property management and has been in the US market for 25 years.
Dang Phan, managing director for the US at CapitaLand International, told the media, “Across the US, multifamily rents have recovered faster than other asset types during 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. Despite the pandemic, Austin continues to be an attractive technology, business, government and investment hub with a steady outlook. Austin’s business-friendly policies, high quality of life and skilled workforce have attracted major technology and Internet companies such as Amazon, Apple, Google, IBM, Oracle and Tesla to set up substantial operations in the city.”
According to CapitaLand, the joint venture partner will hold 20 percent of the stake in the project and the remaining 80 percent by CapitaLand. The joint venture project will be carried out at a 1.9ha land parcel and will see the development of a mid-rise green 341-unit suburban multi-family property.