QuadReal Invests $600M in Student Housing JV

QuadReal invested $600 million of equity into a partnership with CA Student Living (CASL) and GI Partners. The joint venture’s initial portfolio includes 10 geographically diversified properties, developed and managed by CASL, in 10 major university markets across nine states.
Uncommon at Athens, Ga.

Uncommon at Athens, Ga.

QuadReal Property Group, CA Student Living and GI Partners formed a joint venture to acquire, develop and manage student housing communities at select universities across the United States. QuadReal has invested $600 million of equity into the partnership. CASL and GI are co-investors and general partners, with CASL serving as the operating partner.

“Much of the student housing stock in the U.S. is aging and in need of repair or replacement, providing an opportunity to invest in long-term assets that provide an ongoing, dependable revenue stream and align with QuadReal’s desire for strong investment returns,” said Jonathan Dubois-Phillips, president of international real estate at QuadReal. “We are very pleased to work with experienced partners such as CASL and GI as we build out our current portfolio of high-quality, income-producing properties and seek future investments in the resilient student housing sector.”

The joint venture’s initial portfolio includes 10 properties totaling 4,713 bedrooms, developed and managed by CASL. The communities are geographically diversified in 10 major university markets across nine states. Four of the properties were built by CASL between 2015 and 2016 and six will be delivered in fall 2017. The assets are already almost 80 percent pre-leased for the fall school year, which is 20 percent above their mark last year at this same time. In addition, the joint venture will acquire and develop additional student housing projects across the country to grow and diversify the portfolio.

“Student housing has continued to grow and evolve as capital flows into the sector and developers tailor their communities to the needs of today’s students,” JJ Smith, president of CASL, told Multi-Housing News. “We pioneered the luxury infill student housing model in 2004, and from an investment standpoint, it’s incredible to see the growing interest in the sector as part of international investment strategies. We are honored to be working with one of Canada’s largest pension funds to continue on our trajectory of bringing best-in-class housing options to university students both nationally and internationally.”

Image courtesy of CA Student Living