The sale of Cheval apartments, allows AMP Capital to identify and potentially capitalise on secondary US markets in areas such as Florida and Massachusetts.
“This transaction allows us to capitalise on the high demand for core assets at this point in the cycle and redeploy the proceeds into top tier secondary US markets poised for growth,” AMP Capital fund manager Tim Fallet said.
The asset was a 387 unit residential complex which is centrally located near major employment and lifestyle centres in Houston, Texas.
It was acquired in August 2007 for $52.02 million giving the company an impressive $11.58 million capital gain on the asset.
“Our determination of Cheval as an excellent investment opportunity was borne out over the last six years, with a high quality asset, positive market conditions and very active leasing team resulting in strong performance in both rental and capital growth,” Mr Fallet said.
This divestment follows the recent purchases of office buildings located in Tampa and Boston.
