CapitaLand Ltd (CATL.SI), one of Singapore’s largest property developers, said on Tuesday it bought a portfolio of rental apartments in the United States for $835 million, marking its foray into the multifamily asset class.
The portfolio of 16 multifamily properties, which typically refers to multiple separate housing units within one compound, comprises 3,787 apartments, according to CapitaLand.
“This latest acquisition in the U.S., the world’s biggest economy, would expand CapitaLand’s global investment portfolio, diversify our business outside of our two core markets of Singapore and China and allow us to grow new businesses,” Lee Chee Koon, the company’s newly appointed chief executive, said in a statement.
He said there was potential to build this business in other fast-growing markets such as China.
CapitaLand builds and sells homes as well as owns and operates assets such as shopping malls, serviced residences, offices and real estate investment trusts.
The company will also step up its pace of capital recyling and boost the pipeline in its residential trading business, Lee added at a briefing.