Canada Pension Makes First Bet on U.S. Student Housing

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The Canada Pension Plan Investment Board on Monday made its first foray into the U.S. student housing market.

The CPPIB will own a 47.5% stake in a $1.6 billion portfolio of university student housing, which the pension fund has committed to buy along with two other investors.

More details from the Wall Street Journal:

Canada Pension Plan Investment Board and Singapore’s sovereign-wealth fund have teamed with Scion Group LLC to buy a U.S. university student-housing portfolio for about $1.4 billion, the group said Monday.

CPPIB, Singapore’s GIC Private Ltd. and student-housing operator Scion agreed to buy University House Communities Group Inc., which has a portfolio of 18 established U.S. student-housing communities and four in development, from InvenTrust Properties Corp.

The Canadian fund and GIC will each own a 47.5% stake in a newly formed joint venture that will purchase the portfolio, while Scion will own the remaining 5%. Scion will operate the properties, the group said.

“This transaction enables us to gain immediate scale in the attractive U.S. student housing market,” Peter Ballon, CPPIB’s head of real-estate investments for the Americas, said in a news release.

The group said it plans to pursue other opportunities to purchase student housing in the U.S.

CPPIB manages about $197 billion in assets.

 

Photo credit: “Canada blank map” by Lokal_Profil image cut to remove USA by Paul Robinson – Vector map BlankMap-USA-states-Canada-provinces.svg.Modified by Lokal_Profil. Licensed under CC BY-SA 2.5 via Wikimedia Commons

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