TORONTO — The Canada Pension Plan Investment Board has entered into a joint venture to purchase student housing properties in the United States for a total of US$1.4 billion.
The deal would see CPPIB and global investment firm GIC each own a 47.5 per cent stake in University House Communities Group.
The Scion Group, a U.S. owner and operator of student housing communities, would own the remaining five per cent and manage the properties.
The joint venture entity, called Scion Student Communities LP, is set to buy the portfolio of student housing properties from InvenTrust Properties Corp.
It includes 18 existing communities and four that are in development — a total of nearly 13,000 beds.
The deal is expected to close in mid-2016.
"The UHC portfolio represents a valuable opportunity to enter the U.S. student housing sector with top-tier, well-located assets," Peter Ballon, managing director and head of real estate investment in the Americas for CPPIB, said in a statement Monday.
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By The Canadian Press
