Student Housing Business

MAR-APR 2018

Student Housing Business is the voice of the student housing industry.

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TOP INVESTORS March/April 2018 76 Big Portfolios, Big Deals Lead Top Investors List With nine major sales in 2017, portfolio buyers top the list of the industry's leading investors. By Randall Shearin W While 2017 saw lower investment sales vol- ume that 2016, investment sales in the stu- dent housing sector are off to a healthy start for 2018, with many sales pending. The top investors in student housing over the past 24 months have remained a buoyant and steady group of contributors to the industry's vibran- cy. The increased amount of foreign capital entering the space has also become evident when reviewing the top buyers in the indus- try. Three of the top five buyers on Real Capi- tal Analytics' Top Buyers in the student hous- ing sector are sovereign wealth funds from foreign countries. Many other foreign funds are co-invested with U.S. developers in the student housing sector. Here's a review of the top investors during the past 24 months, as well as a look at investment trends from 2017 based on the latest industry data. Top Transactions While investment sales volume in the sector in 2017 did not equal that of 2016, there were nine large portfolio transactions during the year [see chart]. The three largest deals (by number of properties) of 2017 were all sold to Scion Student Communities (SSC), the joint venture of The Scion Group, Canadian wealth fund CPPIB and Singapore-based wealth fund GIC. The largest of the transactions was SSC's 22-property purchase from Harrison Street for $1.1 billion that closed just before the end of the year. In March 2017, Harrison Street and other entities also sold 11 properties to SSC for $640 million, the third largest transaction in the industry by bed count for the year. SSC was also the buyer of the industry's second largest sale, a portfolio of 18 properties from various owners. The fourth largest portfolio sale of the year was the purchase of eight properties con- taining 3,821 beds for $1.6 billion by Singa- pore-based Mapletree from Kayne Anderson. The fifth largest portfolio transaction was a 3,776-bed portfolio of seven relatively new properties purchased by American Campus Communities for $590.6 million from Core Spaces that occurred in September. Rounding out the other four large portfolio transactions were two separate acquisitions by Waypoint Residential (2,638 beds from Blue Vista and 1,382 beds from Starwood Capital); Centurion Student Housing's acquisition of 1,720 beds in four properties from M&A Real Estate Part- ners; and The Preiss Company's purchase of 3,076 beds in three properties from Starwood Capital. Interesting to note is that in 2017, foreign capital accounted for nearly 50 percent of sales volume, while private equity accounted for only 8 percent of total sales volume, according to Four Point Student Housing Investments. In all, these nine portfolio sales accounted for 78 properties and 47,727 beds, according to Four Point Student Housing's 2017 Year-End Report, from which much of the data above is extracted. Top Buyers Scion Student Communities, the joint ven- ture of The Scion Group, CPPIB and GIC, has 2017's Large Portfolio Transactions Buyer Seller # of Beds # of Properties Sale Price Scion Student Communities Harrison Street 11,950 22 $1.1B Scion Student Communities Various 14,495 18 $935M Scion Student Communities Harrison Street + various 6,369 11 $640M Mapletree Kayne Anderson 3,821 8 $1.6B American Campus Communities Core Spaces 3,776 7 $590.6M Waypoint Residential Blue Vista 2,638 5 $102M Centurion Student M&A Real Estate Partners 1,720 4 Undisclosed Investment Management The Preiss Company Starwood Capital 3,076 3 Undisclosed Waypoint Residential Starwood Capital 1,382 3 Undisclosed Source: Four Point Student Housing, Student Housing Business 2016-2017 Investment Sales By the Numbers # sold # sold # of units sold Avg price/unit # of units sold Avg price/unit # of beds sold Avg price/bed # of beds sold Avg price/bed in 2017 in 2016 in 2017 in 2017 in 2016 in 2016 in 2017 2017 in 2016 2016 Portfolios 9 5 16,299 $315,046 27,728 $166,310 47,727 $107,590 77,558 $59,458 Individual Transactions 155 174 27,297 $181,409 31,887 $179,777 73,946 $74,121 81,924 $69,565 Source: Four Point Student Housing Investments

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