Vancouver, British Columbia–based real estate investor QuadReal Property Group (QuadReal) has formed a joint partnership with fellow investor GI Partners (GI) and student housing developer CA Student Living (CASL) to acquire, develop, and manage student housing properties in the United States.
The venture’s initial portfolio will mark the entry point for both QuadReal and GI in the U.S. student housing market and will include 10 properties developed and managed by CASL across 10 major university markets in nine states. The partnership also plans to acquire and develop additional student properties in order to diversify its portfolio.
QuadReal, GI, and CASL aim to align the venture’s assets with emerging student housing market fundamentals, including modern amenities, high-speed Internet, and walkable locations. “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 [that] align with QuadReal’s desire for strong investment returns,” said Jonathan Dubois-Phillips, president, international real estate, QuadReal, in a statement.
QuadReal, a global company with assets of over $18 billion, has invested $600 million in the venture with CASL and GI, which serve as general partners and co-investors; CASL serves as the operating partner. GI manages over $14 billion in assets, and CASL manages $6.8 billion, with 5,000 student housing beds acquired and over 20,000 developed since its founding, in 2004.
“More than a decade ago, CA Student Living began as a pioneer of core infill, pedestrian-oriented developments with modern designs and amenities,” added Tom Scott, CEO of CA Ventures. “Our unique site selection and product development skill set strongly align with the investment philosophy of the new joint venture. The long-term nature of this partnership with QuadReal and GI underscores our confidence in the continued growth of this burgeoning sector.”
