CPPIB, GIC and Scion acquire $1.1bn student housing portfolio

The Canadian Pension Plan Investment Board (CPPIB) has expanded its existing joint venture with GIC and The Scion Group with the purchase of a new US student housing portfolio for approximately $1.1bn.

CPPIB and GIC each own a 45% stake in the new portfolio, with Scion having acquired the remaining 10%.

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“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,” said Hilary Spann, Managing Director, Head of Americas, Real Estate Investments, CPPIB.

22 of the properties were purchased from affiliates of Harrison Street Real Estate Capital, with the remaining two having been owned by Scion’s own affiliates.

The newly acquired 24 buildings are located across a range of 20 US university campuses, providing a total of 13,666 beds.

“As a long-term investor, we are pleased to acquire this quality portfolio with good cash yields,” said Lee Kok Sun, Chief Investment Officer, GIC Real Estate. “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.”

Since 2016, the joint venture has invested over $4bn into four significant transactions, with approximately $1.4bn in equity capital having been deployed.

In total, the joint portfolio now includes 73 student housing properties across 52 universities, comprising of a total 46,555 beds.