SINGAPORE (EDGEPROP) - CapitaLand has formed a joint venture with a real estate investment, development and property management firm in the United States. The joint venture will acquire and develop multifamily assets in the Southeast and Southwest markets of the US totalling US$300 million ($416 million).

The first multifamily project is the acquisition of a 4.71-acre (205,168 sq ft) freehold land parcel in the technology-driven city of Austin, Texas. The land will be developed into a 341-unit suburban property to be completed in 2023. CapitaLand has an 80% stake in the project while its partner holds the remaining 20%.

CapitaLand’s partner has developed over 25,000 multifamily units across high-growth and resilient markets in the US since 25 years ago.

Read more: People-centricity at the core of CapitaLand’s success

Dang Phan, managing director for USA, CapitaLand International, says: "Since the acquisition of 16 freehold suburban multifamily properties in 2018, they have remained resilient and achieved a current committed occupancy rate of about 95%.”

He adds that multifamily rents have recovered faster than other asset types during past recessions and believes that having a resilient and stable-yielding multifamily portfolio will provide income stability for the group.