CapitaLand buys 16 multi-family properties in US for $1.14b

 The Marquessa Villas are surrounded by award-winning schools as well as retail and dining outlets.
The Marquessa Villas are surrounded by award-winning schools as well as retail and dining outlets.PHOTO: CAPITALAND
Stoneridge at Cornell is near 850,000 sq ft of retail space and has direct access to a handful of major retail hubs.
Stoneridge at Cornell is near 850,000 sq ft of retail space and has direct access to a handful of major retail hubs.PHOTO: CAPITALAND
Heronfield is also the headquarters of Microsoft as well as multinational companies such as Boeing, Amazon, Google, Facebook, Starbucks and Expedia.
Heronfield is also the headquarters of Microsoft as well as multinational companies such as Boeing, Amazon, Google, Facebook, Starbucks and Expedia.PHOTO: CAPITALAND

SINGAPORE - CapitaLand has acquired 16 multi-family properties in the United States for US$835 million (S$1.14 billion), the real estate developer announced on Tuesday (Sept 18) morning.

The portfolio comprises 3,787 apartment units located in suburban communities of the metropolitan areas of Seattle, Portland, Greater Los Angeles and Denver. CapitaLand said it marks the group's foray into the country's multi-family asset class to ride on the growing demand for long-term rental housing.

The price per unit of the portfolio is US$220,000, which CapitaLand said is consistent with market transactions. The properties are operating at more than 90 per cent average occupancy, with an average length of stay of about two years.

"This latest acquisition in the US, the world's biggest economy, 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," said CapitaLand president and group CEO Lee Chee Koon.

"The multi-family sector in the US 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 classes in the US, this multi-family portfolio offers attractive risk-adjusted returns for CapitaLand."

The transaction is expected to be completed in fouth quarter of 2018.

CapitaLand first entered the US market in August 2015 and has acquired five properties there through its subsidiary Ascott. Ascott also owns a majority stake in Synergy Global Housing, which offers apartments for corporate lease.

The latest multi-family portfolio acquisition increases CapitaLand's investment in the US to more than US$1.5 billion and its presence in the market to more than 6,500 units.