Tuesday, January 5, 2016

GIC forms joint venture to acquire US student housing portfolio for US$1.4 billion

GIC says it plans to, together with joint venture partners, buy a student housing portfolio in the United States that is worth about US$1.4 billion ($2 billion).

GIC, the Canada Pension Plan Investment Board (CPPIB) and The Scion Group LLC say they have formed a student housing joint venture entity, Scion Student Communities LP.

The joint venture, through its subsidiary, UHC Acquisition Sub, plans to acquire University House Communities Group, Inc (UHC), a student housing portfolio in the United States, for a total of about US$1.4 billion from InvenTrust Properties Corp. This will include the cost to complete current development projects.

Through the joint venture, CPPIB and GIC will each own a 47.5% interest in UHC. Scion will own the remaining 5%, as well as manage and operate the portfolio. The joint venture will also pursue additional opportunities to acquire "high-quality student housing assets" primarily in Tier-1 university markets in the US. The transaction is expected to close in mid-2016.

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