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

The joint venture, through its subsidiary, UHC Acquisition Sub LLC, has signed an agreement to acquire University House Communities Group, a student housing portfolio in the U.S. for a total consideration of approximately US$1.4 billion, including the cost to complete current development projects, from InvenTrust Properties Corp.

“The UHC portfolio represents a valuable opportunity to enter the U.S. student housing sector with top-tier, well-located assets,” said Peter Ballon, managing director, head of Real Estate Investments Americas at CPPIB. “This transaction enables us to gain immediate scale in the attractive U.S. student housing market.”

Through the joint venture, CPPIB and GIC will each own a 47.5% interest in UHC, while Scion will own the remaining 5%.

According to a press release, the joint venture will pursue additional opportunities to acquire high-quality student housing assets, primarily in Tier 1 university markets in the U.S.

The transaction is expected to close in mid-2016.

Copyright © 2017 Transcontinental Media G.P. Originally published on benefitscanada.com

Join us on Twitter