A joint venture between The Scion Group, Singapore-based sovereign wealth fund GIC and Canada Pension Plan Investment Board received $672 million in debt for the acquisition of the University House portfolio, according to a press release.
Maryland-based Walker & Dunlop secured the Fannie Mae financing, which the joint venture partners used towards the $1.4 billion buy of the massive student housing portfolio, which is spread across 21 campuses in Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Louisiana, North Carolina, Oregon, Pennsylvania and Texas. The joint venture partners signed an agreement for the acquisition from InvenTrust Properties in January, as has been widely reported.
“The acquisition of University Housing Communities is strategic for Scion and the first investment by the joint venture,” said Scion’s Chief Investment Officer Avi Lewittes said in prepared remarks. “We were impressed by the commitment and professionalism of the broader Walker & Dunlop and Fannie Mae teams in delivering highly attractive financing terms for this important transaction.”
Walker & Dunlop’s Brendan Coleman and Will Baker worked on the transaction.
“We were honored to work with Scion, one of the most experienced and respected student
housing owners and operators in the United States, GIC and CPPIB on this financing,” Baker stated in the release. “Our experienced student housing team was successful in meeting the joint venture’s needs on this complex transaction by negotiating a flexible solution with Fannie Mae.”
Scion currently owns and operates more than 38,175 beds across 42 universities. The recently acquired InvenTrust portfolio is comprised of 18 stabilized student housing complexes and four properties under development. There are a total of roughly 13,000 beds, and the hefty price tag of the sale values each bed at roughly $107,692, according to CoStar News.