Continued low interest rates and demographic tailwinds are bringing an inflow of cross-border capital into the U.S. housing market.
Case in point: The $1.3 billion acquisition in June of University Housing Communities Group (UHC) by Chicago-based Scion Group, which partnered with GIC, the sovereign wealth fund of Singapore, as well as the Canada Pension Plan Investment Board (CPPIB).
“There is now so much international money coming into U.S. student housing,” says Will Baker, managing director of multifamily finance with Walker & Dunlop, which helped finance the UHC deal. “They see rising enrollment at the larger, state universities.”
And the CPPIB indicates its appetite for U.S. student housing is growing.
“We look forward to working with GIC, an existing partner, and Scion, an experienced operator, on the UHC portfolio, as well as future student housing investment opportunities in the U.S.,” says Peter Ballon, managing director and head of real estate investments, Americas, for CPPIB.