Canada Pension Plan Investment Board (CPPIB), Singapore’s sovereign wealth fund GIC and property owner Scion Group LLC said on Thursday their joint venture had bought three U.S. student housing portfolios for about US$1.6 billion, in its second major deal in the United States.
CPPIB, which manages Canada’s national pension fund and is a major global deal-maker, had formed the student housing joint venture with GIC and Scion in January last year.
Canadian pension funds have been buying real estate assets around the world to diversify their investments.
CPPIB and GIC will each own a 45 percent stake in the three portfolios and Scion Group will own the remaining 10 percent.
The investors said on Thursday their joint venture, Scion Student Communities LP, plans to buy more student housing properties in the United States.
The parties struck a similar deal for a student housing portfolio early last year, buying University House Communities Group and its 19 properties for US$1.3 billion.
(Reporting by Komal Khettry in Bengaluru; Editing by Sai Sachin Ravikumar)
Photo courtesy of CPPIB