Global alternative investment firm Investcorp has acquired two student housing properties in the US for $160m (€147.9m).
Investcorp said the assets totalling 914 beds at the University of Florida and the University of Texas at Austin further expand the firm’s student housing portfolio and “reinforce the firm’s position as a leading acquirer of one-off, non-portfolio, student-housing assets over the last two years”.
Michael O’Brien, co-head of US real estate for Investcorp, said: “These new student housing acquisitions exemplify our strategy of investing in high-quality off-campus student housing in dynamic and growing college towns.
“Investcorp was an early mover into student housing 12 years ago, and we continue to have high conviction in the sector due to strong secular tailwinds and consistently strong fundamentals including continued enrollment growth, limited pipelines of new supply on- and off-campus, and relative resiliency through market cycles.”
Investcorp’s US real estate portfolio primarily consists of industrial and residential properties, accounting for 98% of its total holdings. Since the firm began investing in student housing, it has owned and managed more than 16,500 beds across 25 student housing investments.
O’Brien added: “Our national student housing portfolio is 99% occupied for the 2023/2024 academic year, and these new acquisitions at the University of Florida and the University of Texas at Austin appear to be far outpacing market averages in pre-leasing for the 2024/2025 academic year.”
Ryan Bassett, Investcorp’s head of residential acquisitions, said: “Our student housing acquisition activity over the last two years highlights our ability to deploy capital into high-conviction strategies at a time when many other investors remain on the sidelines.
“We continue to be highly selective on markets, asset quality and business plans, and have taken advantage of the dislocation with more attractive valuations and lower risk strategies.”
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