Biting the Big Apple: KepLand pours US$70m into luxury New York residential development

Its maiden US investment is in Manhattan’s posh Upper East Side.

Keppel Land is not cutting corners when it comes to its first-ever investment in the United States. The company announced today that it is investing US$70m (S$87m) into a prime residential development located in Manhattan’s Upper East Side, one of the most affluent neighborhoods in New York City.

The property will be developed by Macklowe Properties, an established New York real estate developer whose quality portfolio in the city includes the Metropolitan Tower, a luxury residential development, as well as 432 Park Avenue, the tallest residential building in the western hemisphere.

The property will also comprise a retail component, and the investment will be managed by Keppel Land's fund management subsidiary, Alpha Investment Partners.

According to Ang Wee Gee, CEO of Keppel Land, "For our first investment in the US, we are partnering one of New York's top developers and will be able to tap on Macklowe's deep insights, rich experience and keen knowledge of the local market. With this prime property, we hope to meet the demand for well-located quality homes in one of the world's leading business and financial capitals. Keppel Land will continue to invest opportunistically in key global cities with good growth potential, while remaining focused on Asia, with Singapore and China as our core markets."

Here’s more from Keppel Land:

The Property is located in an established residential neighbourhood in Manhattan, on the boundary of Upper East Side and Midtown East.

It is conveniently located within walking distance to the subway station on Lexington Avenue and 59th Street, and is a five-minute walk from office developments such as the Citigroup Building and the Metlife Building.

Future residents can also look forward to the diverse range of amenities and entertainment options around Midtown Manhattan.

It is just blocks from Central Park, the national historic landmark in New York, and near numerous luxury designer and fashion boutiques such as the flagship outlet of high-end department store, Bloomingdales.

The residential market in Manhattan remains strong. According to a 2Q 2014 report by Douglas Elliman Real Estate, Manhattan faces a low inventory for condominiums.

Listing inventory fell to a 14-year low of 4,164 units in 4Q 2013 but rose by 18% year-on-year (y-o-y) to 5,659 in the second quarter this year, which is still considered low for a highly competitive market. Monthly absorption rate edged 0.5 months y-o-y to 5.1 months in 2Q 2014, well below the 8.4 months average of the past decade.