GIC-backed Greystar fund completes purchase of luxury US apartment developer for US$4.4b

The Mark, an apartment community at Boca Raton in Florida owned by Monogram.
The Mark, an apartment community at Boca Raton in Florida owned by Monogram.PHOTO: GIC

SINGAPORE - A fund backed by Singapore sovereign wealth fund GIC has completed its acquisition of luxury US apartment developer Monogram for a total transaction value of approximately US$4.4 billion (S$5.93 billion).

Monogram owns, operates and develops luxury apartment communities in coastal and urban markets including southern Florida, Texas and Virginia. As at June 30, 2017, its portfolio includes investments in 48 multifamily communities in 10 states comprising 13,438 apartment homes.

GIC invested an undisclosed amount in the perpetual-life fund, Greystar Growth & Income Fund (GGIF), set up by Greystar Real Estate Partners.

Other initial founding capital partners in the Greystar-led fund include the affiliates of Dutch pension capital investor APG Asset Management, Canadian real estate investor Ivanhoe Cambridge and privately-owned Dutch investment manager PGGM.

In a media release on Wednesday (Sept 20), Lee Kok Sun, GIC Real Estate's chief investment officer and regional head, Asia, said: "We are pleased to establish our partnership with Greystar with this acquisition. The US 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."