Singapore Property Investment Firm CapitaLand Expands to Austin With a $300 Million Joint Venture

Abbie Ackerly
December 31, 2020
Singapore Property Investment Firm CapitaLand Expands to Austin With a $300 Million Joint Venture

Domestic companies are not the only ones trying to invest in Austin properties because foreign players are also entering the arena. In December, the Singaporean CapitaLand stated that they are planning to work on a 341-unit multifamily real estate asset close to The Domain. The venture will be the first in its niche in Austin and is actually a part of a bigger 300m dollar joint venture with an anonymous partner.

The building will be located on a parcel of 4.71 acres, and it’s planned it goes into use by 2023. The firm actually didn’t want to say anything about the location itself, so they just said it was close to the FC Major League Soccer stadium built at McKalla Place.

Though people are curious why the company decided to come to the Texas Capital, they know this will influence other names wanting to develop or handle Central Texas properties. CapitaLand said that Austin was one of the marketplaces they were focusing on when it comes to US investments.

The firm’s managing director for the States, Dang Phan, gave some of the reasons why they were eyeing Austin and if the firm plans to continue focusing on Central Texas in times to come. The company owns an 8o% interest in the Austin Joint Venture, while the mysterious real estate managing company, located in the capital, has another 20% stake.

This venture will give CapitaLand 4.7 billion dollars in assets under management in the US. The firm now has sixteen multifamily assets with over 3,700 units in La, Denver, Seattle, and Portland. The Ascott Limited and Ascott Residence Trust wholly owns CapitaLand, and this firm also jointly handles 5 hotels in the States.

This project is the biggest development made in its area. Other big developments are also underway, beginning with the mentioned stadium, which will be finished next year. As well as an office building with sixteen stories, developed by Capella Capital Partners and named Arena Tower.

The firm worked on an investment plan for the US and looked carefully at their geographic priorities through different factors, like population and job growth. They saw the capital as an enticing venture and destination because of the growing tech, enterprise, government, and investment opportunities. Austin is friendly towards businesses, has a good quality of life and the labor force is highly-skilled. Moreover, firms such as Google, Tesla, Amazon, and Apple arrived in the city as well. CapitaLand doesn’t aim to stop with its joint venture project and plans on enlarging its business in the capital.

The venture is part of a bigger programmatic joint venture that helps the firm grow its portfolio of multifamily assets in the States. Via the project, the company will obtain strategic arrangements with its partner to acquire and develop multifamily assets that will total $300 million. Then, the joint venture is going to invest in multifamily assets in Southeast and Southwest marketplaces with the focus still on Austin, but on other fast-expanding cities, as well.

The joint venture is tailored for multifamily usage. It will have 1.4 acres of expansive outdoor recreation space to suit the needs of the rising number of experts and other workers, such as remote ones. It will also arrive with an array of studios, single-room apartments, and two-bedroom apartments with separate living and working spaces for those who work remotely.

CapitaLand is eyeing all the chances with trustworthy partners who have similar targets and plans, a robust background of achievements, and stable finances. The firm said another announcement would arrive when a material transaction occurs.


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