TORONTO — A joint venture including the Canada Pension Plan Investment Board, GIC and the Scion Group LLC has bought a portfolio U.S. student housing properties for US$1.1 billion.
The deal includes the acquisition of 22 properties from affiliates of Harrison Street Real Estate Capital and the recapitalization of two communities owned by Scion-affiliated private syndications.
The properties are located in 20 university campus markets across the U.S. and include 13,666 beds.
CPPIB and GIC each own a 45 per cent interest in the newly acquired portfolio and Scion owns the remaining 10 per cent.
The board says it believes the secular strength of the U.S. student housing sector will continue to deliver attractive risk-adjusted returns and it looks forward to continue growing the joint venture with GIC and Scion.
The joint venture's portfolio now includes 73 student housing communities in 52 university markets, comprising 46,555 beds.
The Canadian Press