AUSTIN, TX – CapitaLand has established a programmatic joint venture to scale its multi-family asset portfolio in the United States of America (USA). Through the joint venture, CapitaLand will enter into a strategic agreement with its joint venture partner for the acquisition and development of multi-family assets with a gross asset value of USD 300 million and USD 416.1 million. The joint venture partner is a real estate investment, development and property management firm headquartered in Austin. The joint venture will invest in multi-family facilities in the southeast and southwest of the United States, with an initial focus on Austin, Texas.
CapitaLand and its partner have acquired property in the high-growth, technology-driven city of Austin to develop the joint venture's first multi-family project. CapitaLand has an 80% stake in the project, while its partner holds the remaining 20%. The 4.71 hectare property is being developed into a modern, medium-sized and green apartment building with 341 residential units, which is expected to be completed in 2023. The CapitaLand partner has since developed over 25,000 apartment buildings in high-growth and resilient markets in the USA, and was founded 25 years ago.
Mr. Jason Leow, President of Singapore & International, CapitaLand Group, said: "Development is one of CapitaLand's key strategic pillars of growth, alongside housing and fund management. CapitaLand's acquisition of this prime location to develop our first multi-family home in Austin and a potential pipeline of projects in Southeast and Southwest US markets will accelerate CapitaLand's growth in the resilient multi-family sector. It complements our current portfolio of 16 suburban apartment buildings acquired in 2018 and strengthens CapitaLand's presence and track record in the market Looking for attractive investment opportunities to build on our diversified and balanced portfolio and offer our stakeholders long-term value. "
Mr. Dang Phan, Managing Director for USA, CapitaLand International, said: "Since acquiring our sub-family portfolio in 2018, we have continued to add value to the assets through ongoing refurbishment to increase returns. Our apartment buildings have remained stable and have A recent performance in the US, rents for apartment buildings have recovered faster than other types of assets in recent recessions. (2) Before COVID-19, investment capital allocation for the multi-family sector has outperformed other property types, and the pandemic has it Preference accelerates (3). If we increase our investments in the robust, liquid and stable-yielding multi-family portfolio, this will lead to income stability. "
"Despite COVID-19, Austin continues to be an attractive technology, business, government and investment location with stable prospects, an ideal base for CapitaLand to scale our multi-family portfolio in the US. Austin's business-friendly policies, high quality of life and skilled workforce have a large Tech and internet companies like Amazon, Apple, Google, IBM, Oracle and Tesla attracted to build large-scale operations in the city. The city's focus on technology has also fueled population and employment growth, consistently outperforming the national average demand for quality quality housing has increased accordingly, and rents have increased 50% over the past decade, "added Phan.
The upcoming 341-unit apartment building in Austin is in a vibrant location near commercial, residential and recreational activities. The development is a five minute drive from The Domain, a living, working and gaming hub commonly referred to as "Austin's second downtown area". The domain comprises over 1.8 million square meters of retail equipment and over 3.4 million square meters of office space, as well as 3,700 apartments and 900 hotel rooms.
The property is also adjacent to McKalla Place Major League Soccer Stadium, which is home to the Austin Football Club soccer team. The stadium is scheduled to open in spring 2021 and will offer space for over 20,000 visitors. It will host musical performances, concerts, football games and other community events.
The property is well positioned to meet the demands of technology and other nearby professionals looking for a comfortable, well designed and safe living option within close proximity to commercial developments. The accommodation was designed for residents in a post-COVID-19 landscape and will implement functions such as keyless entry to the apartments as well as smart home functions in the apartment. Hand sanitizer stations and antimicrobial surfaces will be installed in the development's shared spaces, while the shared bathrooms offer hands-free amenities like non-contact faucets and soap dispensers. The property will have approximately 1.4 acres of extensive outdoor recreation spaces to meet the needs of an emerging population of professionals who work from home. The property offers a mix of studios, one and two bedroom apartments with separate work and living areas so residents can work efficiently from home.