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A subsidiary of a joint venture (JV) entity consisting of Singapore’s GIC, the Canada Pension Plan Investment Board (CPPIB) and The Scion Group LLC has inked an agreement to acquire a leading student housing portfolio in the United States at a total cost of about US$1.4 billion (S$1.99 billion). The price includes expenses needed to complete ongoing projects.
Through its unit UHC Acquisition Sub LLC, the JV firm called Scion Student Communities LP intends to purchase the student housing portfolio known as University House Communities Group (UHC) from InvenTrust Properties. GIC and CPPIB will each own a 47.5 percent stake in UHC, while Scion will hold the remaining 5 percent interest.
The properties comprise nearly 13,000 beds across 18 stabilised developments and four communities under construction. The assets are concentrated among top-ranked schools with large student populations, making UHC one of the highest quality and largest Class A national student housing portfolios in the country.
“The portfolio is of high quality and we expect it to generate steady cash flows moving forward. Our confidence in the U.S. student housing sector continues, given its positive fundamentals and potential. We are pleased to establish a partnership with Scion, one of the most active private operators and owners in the US student housing sector, and CPPIB, a long-term investor aligned with our values,” said GIC Real Estate’s Regional Head for Americas Lee Kok Sun.
The transaction is expected to be completed by mid-2016 and Scion will manage and operate the portfolio. The JV will also seek other high-quality student housing primarily in Tier 1 university markets in the United States, the press statement said.
Image source: GIC
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg