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Mapletree Acquires $1.6bn Student Portfolio

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Mapletree Investments Pte Ltd has announced the acquisition of another student accommodation portfolio, this time from Kayne Anderson Real Estate Advisors.

The portfolio consists of eight purpose-built student housing assets with 3,611 beds in the United States (US), 140 beds in Canada, and four multi-family assets with 1,388 units in the US.

All sites are situated close to their respective university campuses and are within an average distance of 0.2 miles. Current occupancy rates of the purpose-built accommodation is above 90%, with expectations for further improvement.

The total value of transactions with Kayne Real Estates is estimated to be around $1.6 billion, making it one of the largest transactions recorded in the global student housing market.

Mapletree acquired its first US student housing portfolio from Kayne Real Estate in November 2016, with a total of seven assets. This has now been increased to 17 assets with a total of 12,000 beds across 16 cities in the US.

The company's total student housing portfolio consists of 43 assets with 18,024 beds located 29 cities in the US, United Kingdom and Canada.

Commenting on the deal, Group Chief Executive Office, Hiew Yoon Khong, 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 US and the UK. 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."

Citigroup Global Markets Inc acted as exclusive financial adviser to Kayne Real Estate on the entirety of the sale transactions with Mapletree.