The partner is an Austin-headquartered real estate investment, development and property management firm, which has developed over 25,000 multifamily units across the US since its inception 25 years ago.
CapitaLand and its partner have acquired a 4.71-acre freehold land parcel in the technology-driven city of Austin to develop the JV’s first multifamily project.
The parcel will be developed into a modern, mid-rise and green 341-unit suburban family unit property, which is expected to be completed in 2023.
The project is 80%-held by CapitaLand while the remaining 20% is held by its JV partner.
The property is well-poised to meet the demands of technology and other professionals working nearby, and is designed to cater to residents in a post-Covid-19 landscape with features such as keyless entry to the apartments.
It is situated in a bustling locale that’ll put its residents close to commercial, residential and leisure activities including the McKalla Place Major League Soccer Stadium, home to the Austin Football Club Soccer team that’s slated to open in the spring of 2021.
It is also a five-minute drive away from The Domain a node for live, work and play, and commonly referred to Austin’s “second downtown”.
“Development is one of CapitaLand’s key strategic growth pillars, along with lodging and fund management,” says Jason Leow president, Singapore & International, at CapitaLand Group, who adds that the acquisition will “will accelerate CapitaLand’s growth in the resilient multifamily sector”.
With this new investment, CapitaLand will have some $4.7 billion of assets under management (AUM) in the US.
"Since the acquisition of our suburban multifamily portfolio in 2018, we have value-added to the assets through progressive refurbishment to enhance returns. Our multifamily properties have remained resilient and achieved a current committed occupancy rate of about 95%,” says Dang Phan, managing director for US at CapitaLand International.
“Across the US, multifamily rents have recovered faster than other asset types during the 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,” Phan adds.
Shares in CapitaLand closed 4 cents higher or 1.3% up at $3.17 on Dec 4.
