Ascott and Ascott Residence to Develop US $ 110 Million Student Housing Asset | New

CapitaLand’s accommodation business unit, Ascott, and its hospitality trust, Ascott Residence Trust (ART), will jointly invest and develop a student housing asset of $ 109.9 million (€ 90.6 million ) in South Carolina, United States.

Initially, Ascott and Ascott Residence Trust will jointly own a 45% interest each in the project. An unnamed third party partner will hold the remaining 10% stake for the alignment of interests.

The partner is a joint venture between one of the largest developers of student housing in the United States and a large United States-based national real estate developer and entrepreneur, according to CapitaLand.

When the building’s performance has stabilized, the CapitaLand subsidiaries will buy the remaining part from the third-party partner.

The 678-bed student housing complex is expected to be completed in the second quarter of 2023.

The company said Ascott has separately formed a partnership with the student housing developer to invest and develop more student housing in the United States.

These properties could become a potential pipeline for ART, which would also have the right to acquire all of Ascott’s student housing assets in the future.

Kevin Goh, CEO of CapitaLand for Accommodation and CEO of Ascott, said: “Through our partnership with the leading local developer of student housing, Ascott will have immediate access to state-of-the-art student housing assets. -United.

Goh said Ascott will continue to work with reputable partners to expand the group’s student housing and rental housing portfolios in its target markets.

The latest transaction was the second student housing asset for ART, said Beh Siew Kim, CEO of ART, adding that the trust first entered the US market with an acquisition in Georgia.

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