Morgan Stanley Real Estate Investing (MSREI) is investing in the $1.6bn (€1.42bn) US student housing portfolio recently assembled by Global Student Accommodation (GSA).
The portfolio of nearly 15,000 beds in 21 states and 29 cities includes the debut US portfolio GSA acquired a year ago and the recent acquisition from Harrison Street.
GSA said a fund advised by MSREI had established an open-ended joint venture “that marked the start of a long-term relationship”.
Alec Burger, chair of GSA, said: “This is a significant opportunity for both GSA and MSREI to together make a meaningful impact in the market.
“Since entering the US market, GSA has been deliberate in executing its growth strategy, proven by our most recent acquisition, enabling us to seed this partnership with a sizeable and highly attractive portfolio.
“With an experienced investment partner, who we share great cultural alignment, we are united in a desire to be a true leader in US student housing for many years to come.
“Having a permanent JV partner of MSREI’s calibre provides the opportunity for sustainable growth in the US market as well as the ability to replicate what we have successfully achieved in other global markets.
“The US is the largest student housing market in the world and will continue to be underpinned by demand for higher education, both domestically and internationally.”
John Klopp, global head of real assets at Morgan Stanley Investment Management, said: “After careful study of the student housing market, we looked for a scalable opportunity and a best-in-class partner for our entry point – this venture achieves both.
“We believe that the combination of MSREI’s broad real estate investing platform and GSA’s thoughtful, innovative approach to the sector will allow us to deliver attractive and differentiated exposure to our investors.”
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