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QuadReal, GI Partners ink student housing JV

The real estate arm of British Columbia Investment Management Corporation is contributing $600m to the partnership.

QuadReal Property Group, the real estate arm of British Columbia Investment Management Corporation, and private equity firm GI Partners are teaming up for the groups’ US student housing debut with a new partnership, the groups said Monday.

The groups are working with CA Student Living, which will be a co-investor and the operating partner. Vancouver-based QuadReal is contributing $600 million of equity to the JV, while the other partners’ investments were unknown as of press time.

“Much of the student housing stock in the US 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 align with QuadReal's desire for strong investment returns,” Jonathan Dubois-Phillips, QuadReal’s president, said in Monday’s statement.

The partners’ first portfolio comprises 10 properties, which span nine states, developed and managed by CASL, in a transaction that has already closed.

“As long-term investors in high- quality real estate platforms, GI Partners carefully seeks the right mix of property sectors with attractive growth attributes and experienced, successful partners capable of achieving scale,” John Saer, Greenwich, Connecticut-based GI’s managing director, said in Monday’s statement.

It was unclear as of press time out of which fund capital for GI’s investment originated. The firm, which manages about $14 billion in private equity and real estate, closed its real estate fourth fund on $2 billion in 2014, according to PERE data.

QuadReal oversees more than $18 billion in real estate. bcIMC formed the standalone real estate business in June in a move similar to how many of its peers now manage their real estate holdings, PERE previously reported.