CHICAGO - AMLI Residential (NYSE: AML) has announced a strategic joint venture relationship with BPMT (Stichting Bedrijfspensioenfonds voor de Metaal en Technische Bedrijfstakken), one of Europe's leading pension funds, to acquire approximately $165 million of institutional-quality multifamily apartment communities in AMLI's seven markets.
The joint venture will be capitalized with approximately $25 million of equity each from AMLI and BPMT, with an existing institutional partner of AMLI's contributing an additional amount of approximately $5 million. The properties will be acquired using approximately $110 million of fixed-rate long-term mortgage financing. The joint venture has already entered into contracts to acquire its first two apartment communities, both of which are expected to close later this month. Including these two closings, AMLI will own interests in approximately $1.65 billion of real estate, with approximately $800 million of assets owned in 33 joint ventures with 11 institutional partners.
BPMT is one of the major European institutional investors with current assets of approximately $14 billion and real estate holdings across the globe. Its U.S. real estate portfolio totals over $750 million, being invested both directly and indirectly. BPMT's investment with AMLI will be its first direct investment in the U.S. multifamily sector.