GIC-backed fund sews up $5.9b deal

A fund backed by sovereign wealth fund GIC has completed its acquisition of luxury US apartment developer Monogram for a transaction value of approximately US$4.4 billion (S$5.9 billion).

Monogram owns, operates and develops luxury apartment communities in coastal and urban markets including southern Texas and Virginia states.

As at June 30, its portfolio included investments in 48 multi-family communities in 10 states comprising 13,438 apartment homes.

GIC invested an undisclosed amount in the perpetual-life fund, Greystar Growth and Income Fund, set up by Greystar Real Estate Partners. Other initial founding capital partners in the Greystar-led fund include the affiliates of APG Asset Management, Canadian real estate investor Ivanhoe Cambridge and Dutch investment manager PGGM.

In a media release yesterday, Mr Lee Kok Sun, GIC Real Estate's chief investment officer and regional head for Asia, said: "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."

A version of this article appeared in the print edition of The Straits Times on September 21, 2017, with the headline 'GIC-backed fund sews up $5.9b deal'. Subscribe