The Saudi financial institution Riyad Capital has formed a joint venture with Ascott of Singapore to invest 375 million dollars (332 million euros) in the construction of student accommodation in the United States.
Ascott, an accommodation business unit of CapitaLand Investment, said the Student Accommodation Development Venture (SAVE) has a seed capital commitment of $150 million.
Riyad Capital will hold an 80% stake in SAVE, while Ascott will hold a 20% stake and manage the business.
Ascott said the Saudi company is an existing partner in Ascott’s network of accommodation owners.
Kevin Goh, CEO of CapitaLand Investments for accommodation, said that in 2021, accommodation funds under management increased by more than 7% year-on-year to reach over S$8 billion. .
“SAVE will further increase our funds under management by approximately $375 million when fully deployed.”
With this new acquisition, Ascott has invested approximately US$648.9 million to build a diverse and quality portfolio of nine student housing assets in one year through its funds and its sponsored trust, Ascott Residence Trust.
Riyad Capital’s real estate arm, Riyad International Real Estate, sold an office building in Arlington, Va., in November for more than $200 million.
The real estate platform was launched in 2018 and has since acquired SR9 billion (€2.1 billion) of retail properties leased to institutional-grade tenants under long-term leases in major metropolitan cities in the United States and Europe.
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