A joint venture between three companies, including the Canada Pension Plan Investment Board, has acquired a 24-asset student housing portfolio for $1.1B.
The new portfolio, owned by CPPIB, The Scion Group and Singapore's sovereign-wealth fund, GIC, includes 22 properties purchased from affiliates of Harrison Street Real Estate Capital, in addition to two recapitalized communities owned by affiliates of Scion.
“This is a compelling investment opportunity to efficiently build further scale in the U.S. student housing sector with a portfolio of high-quality, well-located properties in new and existing joint venture markets,” CPPIB Managing Director and Head of Americas Real Estate Investments Hilary Spann said in a statement.
The properties span 20 university campus markets across the country and include a mix of Class-A and value-add assets.
Overall, the JV portfolio now includes 73 student housing communities in 52 U.S. cities, and totals 46,555 beds. CPPIB and GIC each own a 45% interest in the JV, while Scion owns the remaining 10%.
“As a long-term investor, we are pleased to acquire this quality portfolio with good cash yields. We remain confident in the student housing sector, and in our partnership with Scion and CPPIB, which has enabled us to scale-up quickly our U.S. student housing portfolio," GIC Real Estate Chief Investment Officer Lee Kok Sun said in a statement. "We will continue to work closely with our partners to pursue value opportunities in the U.S."
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