Mapletree Acquires Top Quality US Student Accommodation Portfolio
02 Nov 2016
Acquisition comprising close to 6,000 beds brings Mapletree’s total student accommodation to almost 12,000 beds across 32 assets located in the UK and the US
SINGAPORE – Mapletree Investments Pte Ltd (“Mapletree” or “the Group”) has completed the acquisition of a portfolio of seven student accommodation assets located across six states in the United States (“US”) from Kayne Anderson Real Estate Advisors. This also marks the Group’s maiden acquisition of student accommodation in the US, being the largest student accommodation market globally. The Group currently also has a portfolio of serviced apartment / corporate lodging assets in the US.
Supporting Tier 1 US universities which have good national rankings, the portfolio caters to institutions with high enrolments which have compounded annual growth rate of more than 2% over the last 10 years. All seven properties within the quality portfolio are purpose built in the last two to three years and come well-furnished with fittings and amenities such as common rooms, games areas, reading rooms, gyms, swimming pools, etc. The majority of them are located less than 0.5 miles from the respective university campuses (see Annex below). The robustness in the portfolio is underpinned by growing demand for purpose built student accommodation where supply continues to be limited in the seven universities sub-markets, and with undergraduate enrolment in the US expected to continue to grow in the coming years.
This latest acquisition follows the Group’s earlier entry into the student accommodation asset class in March 2016 when it acquired a portfolio of 25 properties in the United Kingdom (“UK”). This portfolio comprises close to 6,000 beds and is spread across 12 core university cities including London, Oxford, Manchester, Edinburgh, Birmingham and Liverpool.
Said Mr Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer: “The healthy demand for higher education globally coupled with the quality of academic institutions in the US and UK present a strong investment case for purpose built student accommodation. In view of the growing demand for quality tertiary education, both from local US and UK as well as international students, we intend to further scale up in these growth markets. Our aim is to build a strong global platform with this defensive and resilient asset class.”
The acquisition is in line with Mapletree’s strategy to invest beyond Asia. Since 2014, the Group has taken steps to diversify its business outside of Asia in developed markets such as the US, UK and Australia. Aimed at growing stable, recurring income streams, the majority of Mapletree’s acquisitions in these markets are income-producing assets. As at end of FY 15/16, the total assets under management in these developed markets were about S$3.5 billion and are expected to grow significantly over the next three years.
Capstone Cottages of San Marcos, Texas, US
Fuse, Indiana, US
The Flats at West Village, Virginia, US
Name: April LEE
Mapletree Investments Pte Ltd
Tel : +65 6377 6115
Email : email@example.com
Name: Christine TEH
Mapletree Investments Pte Ltd
Tel : +65 6377 4608
Email : firstname.lastname@example.org
ANNEX – ABOUT THE US PORTFOLIO
| Property Name
|| City, State
| 13th & Olive
|| Eugene, Oregon
|| University of Oregon
| Lofts at City Center
|| Tuscaloosa, Alabama
|| University of Alabama
| Capstone Cottages of San Marcos
|| San Marcos, Texas
|| Texas State University
| The View on 10th
|| Waco, Texas
|| Baylor University
| One12 Courtland
|| Atlanta, Georgia
|| Georgia State University
| The Flats at West Village
|| Charlottesville, Virginia
|| University of Virginia
|| West Lafayette, Indiana
|| Purdue University
Mapletree is a leading real estate development, investment and capital management company headquartered in Singapore. Its strategic focus is to invest in markets and real estate sectors with good growth potential. By combining its key strengths as a developer, an investor and a capital manager, the Group has established a track record of award-winning projects in Asia, and delivers consistent and high returns across real estate asset classes.
As at 31 March 2016, Mapletree owns and manages S$34.7 billion of office, retail, logistics, industrial, residential, corporate lodging/serviced apartment and student housing properties. It currently manages four Singapore-listed real estate investment trusts (REITs) and five private equity real estate funds, which hold a diverse portfolio of assets in Singapore and Asia Pacific. The Group’s assets are located across 12 economies globally, namely Singapore, Australia, China, Germany, Hong Kong SAR, India, Japan, Malaysia, South Korea, the United Kingdom (“UK”), the United States (“US”) and Vietnam.
Mapletree’s portfolio includes award-winning properties in Singapore such as VivoCity, Mapletree Business City, and Tata Communications Exchange, as well as mixed-use developments in the region such as Nanhai Business City in China and Saigon South Place in Vietnam.
In the US, Mapletree currently owns eight corporate lodging properties comprising 1,278 units worth over US$500 million. This follows an earlier strategic alliance in April 2014 with Oakwood Worldwide. The Oakwood-branded properties are situated in Silicon Valley, Raleigh, Los Angeles, Portland, Dallas and Seattle.
In the UK, Mapletree has a portfolio of 25 student accommodation properties that provides close to 6,000 beds across 12 core university towns such as London, Oxford, Manchester, Edinburgh, Birmingham and Liverpool. It also owns Green Park, a 79-hectare business park in Reading, and other office assets such as the Diageo Headquarters in West London, 3 Hardman Street in Manchester, iQ Building in Aberdeen and One Glass Wharf in Bristol.
For more information, please visit www.mapletree.com.sg.