Kayne Real Estate sells student housing assets to Mapletree

Mapletree Investments Pte has acquired eight student housing assets in the U.S. and Canada. The seller is Kayne Anderson Real Estate Advisors. No financial terms were disclosed. Citigroup Global Markets Inc provided financial advice to Kayne Real Estate on the transaction.


SINGAPORE and BOCA RATON, Fla., June 2, 2017 /PRNewswire/ — Mapletree Investments Pte Ltd (“Mapletree” or “the Group”), a leading real estate development, investment and capital management company, today announced that it has acquired another portfolio of assets from Kayne Anderson Real Estate Advisors (“Kayne Real Estate”). 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, United Kingdom (UK) and Canada, including assets held by its sponsored Mapletree Global Student Accommodation Private Trust (“MGSA P-Trust”)1.

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 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.”

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 this transaction illustrates their focus on expanding strategically. We view these deals 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.

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, the Group has established a track record of award-winning projects, and delivers consistent and high returns across real estate asset classes.
Mapletree currently manages four Singapore-listed real estate investment trusts (REITs) and six private equity real estate funds, which hold a diverse portfolio of assets in Asia Pacific, the United Kingdom (UK) and the United States (US).

As at 31 March 2017, Mapletree owns and manages S$39.5 billion of office, retail, logistics, industrial, residential, corporate housing and serviced apartment, and student housing properties.

The Group’s assets are located across 12 economies globally, namely Singapore, Australia, China, Germany, Hong Kong SAR, India, Japan, Malaysia, South Korea, the UK, the US and Vietnam. To support its global operations, Mapletree has established an extensive network of offices in these countries.

In the US, Mapletree currently holds a portfolio of 17 student housing assets with close to 12,000 beds across 16 cities. In addition, Mapletree owns nine Oakwood-branded corporate housing properties with more than 1,400 units — they are situated in Silicon Valley, Raleigh, Los Angeles, Portland, Dallas and Seattle.

For more information, please visit www.mapletree.com.sg.

Kayne Anderson Real Estate Advisors is a leading real estate private equity investor in off-campus student housing, senior housing and medical office buildings. Kayne Real Estate has raised dedicated real estate private equity funds totaling approximately $5 billion in commitments. Kayne Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $26 billion alternative investment management firm (AUM as of 3/31/17) with more than 30 years of successful experience in the energy, infrastructure, growth capital, real estate, and middle market credit sectors. For more information, visit http://www.kaynecapital.com/strategies/real-estate-private-equity.

1 Further to the press release on MGSA P-Trust dated 21 March 2017, the acquisition of the three assets pending legal completion had taken place on 24 May 2017.