Student housing firm The Scion Group is acquiring the operating business of Student Quarters (SQ), a US student housing operator.
Scion said it has agreed to acquire the Atlanta-based operator with interests in approximately $1.5bn (€1.3bn) of student housing assets.
SQ’s portfolio comprises approximately 13,000 beds across 21 markets, with 77% market overlap with Scion’s existing footprint. Scion said it is acquiring the SQ operating business and will also invest both in underlying real estate and related fund structures.
The transaction is being funded entirely with Scion’s balance sheet without third-party investors or transaction-level financing, it added.
SQ’s senior leadership team will retain their equity stakes and remain actively involved in the business following the closing of the deal.
Robert Bronstein, CEO of Scion, said: “This acquisition is at the centre of a historic period of growth and investment for Scion, with aggregate capital deployment activity exceeding $5bn over the last two years.
“Student Quarters represents a compelling opportunity to extend our platform with a high-quality operating business while partnering with an experienced team that we’re excited to work with.”
Andy Feinour, CEO of Student Quarters, said: “Scion’s scale, resources and long-term approach to investing position the platform for continued growth. Importantly, this transaction enables our team to remain actively involved, ensuring continuity for our investors and supporting long-term value creation.”
Avi Lewittes, CIO of Scion, said: “As operational complexity continues to increase across the student housing sector, scale is becoming an increasingly important differentiator. This transaction enhances our ability to deliver for residents, universities and capital partners, while providing expanded opportunities for team members across the combined platform.”
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