This article is from the Australian Property Journal archive
AMP Capital has returned to the US multifamily market with the acquisition of a residential community in Kansas City in an off-market transaction for US$27.7 million.
The AMP Capital Global Direct Property Fund has acquired The Vintage at Zona Rosa, which comprises 308 units in 13 separate apartment buildings and is currently 85% occupied.
“We are pleased to re-enter the US multifamily market on such favourable terms. We were able to secure the property at a significant discount to replacement value and recent comparable sales in the market,” AMP Capital fund manager Tim Fallet said.
“The investment presents compelling opportunities to improve the asset and our focus will be on maximising occupancy and marking to market rents to increase the net operating income from the asset.
“At this point in the investment cycle property owners really need to focus on driving net income growth within their portfolios for out-performance rather than relying on continuing capital value growth from the broader market.
“This acquisition demonstrates continued execution of our strategy, with the recent sale of our Boston CBD office asset generating a total return for investors in excess of 26% per annum and recycling capital into a high quality core-plus multifamily asset where we can continue to drive investment performance,” he added.
Australian Property Journal
