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Mapletree puts $1.6bn into US student housing

The real estate arm of Singapore’s sovereign wealth fund has acquired eight student housing assets and four multi-family assets from Kayne Anderson.

Mapletree Investments, the real estate arm of the Singaporean sovereign wealth fund Temasek Holdings, has piled $1.6 billion into US student housing through a series of transactions with Kayne Anderson Real Estate Advisors.

In the latest deal, Mapletree has invested in eight purpose-built student housing assets, with 3,611 beds in the US and 140 beds in Canada, and four multi-family assets with 1,388 units in the US.

The Singaporean investor acquired its first US student housing portfolio of seven assets from Kayne Anderson back 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.

The trust, in which Mapletree owns 35 percent, holds about $1.3 billion in student housing assets in the US and the UK. Other investors, whose equity stakes were not disclosed, include the Great Eastern Life Assurance Company, DBS Bank and UBS, which are investing in the trust on behalf of their high-net-worth clients.

“Since 2016, Mapletree has expanded into the student housing asset class on a global scale as it generates stable and consistent earnings,” commented Hiew Yoon Khong, group chief executive of Mapletree.

“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.”

Khong further added that Mapletree plans to seek investments in Australia and continental Europe.

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