Mapletree acquires portfolio of assets from Kayne Anderson Real Estate worth US$1.6 billion, one of the largest student housing transactions globally
Mapletree Investments Pte Ltd , a leading real estate development, investment and capital management company, announced that it has acquired another portfolio of assets from Kayne Anderson Real Estate Advisors . The acquisition comprises eight purpose-built student housing assets with 3,611 beds in the United States (US) and 140 beds in Canada, and four multi-family assets with 1,388 units in the US.
The eight student housing assets are well located abutting university campuses, on average 0.2 miles (320 metres) to their respective universities, the majority of which are ranked as Tier 1. These assets are purpose-built, well designed and have strong occupancy above 90%. They are positioned for further growth as the majority have been completed over the last three years.
Through a series of transactions with Kayne Real Estate worth approximately US$1.6 billion, representing one of the largest transactions in student housing globally, Mapletree’s significant position in the student accommodation sector has been enhanced.
Mapletree acquired its first US student housing portfolio of seven assets from Kayne Real Estate in November 2016 and now has 17 assets with 12,000 beds located across 16 cities in the US. Mapletree’s total student housing portfolio consists of 43 assets with 18,024 beds located across 29 cities in the US, Canada and the UK, including assets held by its sponsored Mapletree Global Student Accommodation Private Trust .
Mr Hiew Yoon Khong, Group Chief Executive Officer of Mapletree said, “Since 2016, Mapletree has expanded into the student housing asset class on a global scale as it generates stable and consistent earnings. We have been able to grow our portfolio through a number of sizeable acquisitions in the United Kingdom (UK) and the US. The short time we have taken to achieve this scale demonstrates our Group’s capabilities and commitment, and we will continue to grow our current portfolio further globally. We are therefore certainly pleased to have partners such as Kayne Real Estate alongside us in our growth plans.”
Mr Al Rabil, Managing Partner and CEO of Kayne Real Estate said, “We continue to be excited about our relationship with Mapletree and are pleased to have completed another successful transaction with them. Mapletree has quickly established itself as an important player in the US student housing space and illustrates their focus on expanding strategically. We view all these as part of the beginning of a long and mutually beneficial partnership with them.”
Mr Hiew added, “Growing university enrolment rates continue to drive demand for student housing. This sector is still under-served and we see opportunities as there is a gap between enrolment and total supply of purpose-built student housing. We intend to scale up in this sector globally including in Australia and continental Europe, aside from the UK and the US.”
Citigroup Global Markets Inc. acted as exclusive financial adviser to Kayne Real Estate on the entirety of the sale transactions with Mapletree.