CHICAGO– CA Ventures (“CA”), a global vertically integrated real estate investment management company, announced that QuadReal Property Group (“QuadReal”) has acquired a 50% interest in its U.S. student living platform.
The transaction formalizes the conversion of QuadReal’s existing student, entity-level investments with CA, to an ownership stake in the company. QuadReal’s commitment with CA Is $1.6 billion including other CA investment vehicles strategically designed to support the continued growth of the firm’s student housing portfolio.
“This is a celebrated milestone for our student living business and the beginning of the exciting next chapter in our longstanding relationship with QuadReal,” said Tom Scott, chief executive officer at CA. “QuadReal has been a valued and trusted partner to CA since 2017 and has played an integral role in the strategic growth and transformation of our student living business. We are all incredibly proud of what we have accomplished to date and enthusiastic about the future opportunities we see for the business and the industry as a whole.”
The U.S. student housing industry, known in the real estate investment world for its recession-resilient qualities, has experienced incredible growth and maturation over the past decade. CA, a pioneer in the sector, has created a scalable, best-in-class development and operational model that has remained on a growth trajectory since its inception in 2004. During that time, CA has delivered more than 60 student housing communities totaling more than 35,000 beds in college communities across the country. Over the past few years, QuadReal has invested alongside CA to deliver 11,432 beds in 23 top-tier university markets.
“Student housing is an area of investment conviction for us based upon our research and our experience in the U.S. working with a dedicated team like CA,” commented Jonathan Dubois-Phillips, QuadReal’s president of international real estate. “Even as this year is delivering unexpected dynamics to the landscape of higher education, students studying in the U.S. need safe and comfortable homes away from home, close to campus and their social and academic networks. CA has long understood the needs and expectations of students and their families. What CA offers is as relevant today as ever. We are pleased to be working together even more closely now with our investment in the operating company.”
This year, CA delivered nine student housing communities with nearly 4,000 beds, all of which were completed in time for the 2020-21 academic year despite the challenges posed by the pandemic. These assets feature signature CA design trademarks such as expansive indoor and outdoor amenity space, state-of-the-art integrated technology and high-end fixtures and finishes within each unit. CA’s thoughtful design approach and in-house operational platform, complete with health and wellness services, has positioned the firm well to navigate the COVID-19 impacts on the student housing market over the past eight months. Since the start of the fall semester, CA has seen a measurable increase in year-over-year leasing activity as a result of the rapidly changing situation on university campuses.
“Today more than ever, we are seeing a flight to quality as investors and lenders look to partner with experienced operators that have made significant investments in the systems, technology and programming that really enhance the residential experience,” said Nishant Bakaya, chief investment officer at CA. “The resilience of demand in this space has been particularly evident during the pandemic. Our core, same-store portfolio has already pre-leased to 95% for the 2020-21 academic year and we are projecting positive leasing momentum through year end. We feel strongly that post-COVID student living will emerge as one of the best-peforming real estate asset classes and we are thrilled to have QuadReal as our partner as we capitalize on these opportunities and build upon our highly successful track record.”
CA and QuadReal will continue to focus on development and acquisition investment opportunities for student housing communities pedestrian to large, research-oriented university systems that offer best-in-class undergraduate and graduate programs.
CA Ventures is a global vertically integrated real estate investment management company with more than $13 billion in assets across the United States, Europe and Latin America. The Chicago-based firm offers comprehensive in-house investment, development and operational services, and specializes in a range of niche, commercial real estate asset classes including student living, senior living, multifamily, industrial and medical office/life sciences. CA manages real estate investments on behalf of some of the world’s largest institutional investors across a range of core, value-add and opportunistic investment vehicles. The firm also offers third-party management services for student, senior and residential assets.
Headquartered in Vancouver, Canada, QuadReal Property Group is a global real estate investment, operating and development company. QuadReal manages the real estate and mortgage programs of British Columbia Investment Management Corporation (BCI), one of Canada’s largest asset managers with a $171.3 billion portfolio.
QuadReal manages a $44.2 billion portfolio spanning 23 Global Cities across 17 countries. The company seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves. Now and for generations to come.