KKR is acquiring a $1.64bn (€1.53bn) student housing Portfolio from Blackstone’s open-ended US real estate fund.

KKR, investing mainly through its opportunistic  KKR Real Estate Partners Americas III fund, has agreed to acquire the portfolio of 19 purpose-built student housing properties from Blackstone Real Estate Income Trust (BREIT).

BREIT acquired the portfolio in 2018 in a joint venture with Greystar Real Estate Partners.

Once the deal is finalised, the portfolio of over 10,000 beds located across 10 states, will be managed by KKR’s University Partners, an owner and operator of student housing across the US.

Justin Pattner, partner at KKR and head of real estate equity in the Americas, said: “Student housing is a sector that we have long-term conviction in. We are pleased to be working with Blackstone to complete this transaction which will add a diverse mix of high-quality properties to our portfolio.

”The operating capabilities we have built with University Partners over the past decade and our ability to transact at scale, position us to create value for our investors and to continue investing in great living experiences across these communities. We are deploying into what we view as a compelling market environment to purchase quality real estate.”

Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate, said: “This transaction is an excellent outcome for BREIT’s investors and demonstrates the strong demand for the high-quality assets in attractive markets that BREIT owns.

“We continue to have long-term conviction in student housing and are actively growing through BREIT’s student housing platform, American Campus Communities, which is the largest owner of student housing in the US.”

Travis Roberts, CEO of University Partners, said: “Approximately half of the portfolio is in markets where we have existing operating experience, and this transaction will enable us to expand our presence into a number of attractive new markets.

”We believe student housing in the top university markets will continue to benefit from strong enrollment growth and structural constraints on new supply.”

To read the latest IPE Real Assets magazine click here.

 

 

Topics