CapitaLand subsidiaries to develop $146.2m property in the US
The property is a 678-bed student accommodation in South Carolina.
CapitaLand’s wholly owned subsidiaries Ascott and Ascott Residence Trust will jointly invest and develop a freehold student accommodation asset located in South Carolina, USA for US$109.9m ($146.2m).
At the initial stage, Ascott and ART plans to jointly invest in the asset to own 45% stake each. A third-party partner, which is a joint venture between one of the largest student housing developers in the USA and a large national real estate developer and contractor based in the USA, will own the remaining 10% stake for alignment of interest.
When the property’s performance stabilises, Ascott and ART plans to acquire the remaining share from the third-party partner. Ascott said that it has separately formed a partnership with the student housing developer to invest and develop more student accommodation properties in the USA.
The 678-bed student accommodation will serve over 35,000 undergraduate and graduate students from the nearby University of South Carolina (USC).
Construction of the student accommodation asset is scheduled to start in Q3 2021 and complete in Q2 2023.