CHICAGO, IL – CA Ventures, the global vertically integrated real estate investment management company, announced that QuadReal Property Group ("QuadReal") has acquired a 50% interest in its US student housing platform. The transaction formalizes the conversion of QuadReal's existing corporate-level student investments with CA into an interest in the company. QuadReal's commitment to CA is $ 1.6 billion, including other CA investment vehicles strategically designed to support the continued growth of the company's student housing portfolio.
"This is a celebrated student milestone and the start of the exciting next chapter in our longstanding relationship with QuadReal," said Tom Scott, chief executive officer, CA. "A valued and trusted partner of CA since 2017, QuadReal has played an important role in the strategic growth and transformation of our student life business. We are all incredibly proud of what we have achieved to date and excited about the future opportunities we have provide 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-resistant properties, has seen incredible growth and maturation over the past decade. CA, a pioneer in the sector, has created a scalable, world-class development and operating model that has remained on a growth path 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 several years, QuadReal has partnered with CA to invest in the delivery of 11,432 beds in 23 world-class university markets.
"Student housing is an area of investment conviction for us because of our research and experience in the US working with a dedicated team like CA," said Jonathan Dubois-Phillips, QuadReal's President, International Real Estate. “While this year adds an unexpected dynamic to the higher education landscape, students studying in the US need a safe and comfortable home close to campus and their social and academic networks. CA has long understood and understood student needs and expectations their families. What CA is offering is more relevant today than ever before. We are pleased to be able to work even more closely 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 of the pandemic. These assets have hallmarks of CA design such as extensive indoor and outdoor areas, state-of-the-art integrated technology, and high-quality fittings and finishes in every unit. CA's thoughtful design approach and internal operating platform of health and wellness services have positioned the company well over the past eight months to manage the impact of COVID-19 on the student housing market. Since the beginning of the fall semester, CA has seen a measurable increase in leasing activities compared to the previous year due to the rapidly changing situation on the university campuses.
"Today more than ever, we see an escape to quality as investors and lenders seek to partner with seasoned operators who have made significant investments in systems, technology and programming that really improve the living experience," said Nishant Bakaya, chief investment officer at CA. “The resilience of demand in this area was particularly evident during the pandemic. Our core portfolio in the same business has already been pre-let to 95% for the 2020-21 academic year, and we forecast positive leasing dynamics through to the end of the year We firmly believe that post-COVID student lives will become one of the top performing real estate asset classes and we look forward to partnering with QuadReal as we seize these opportunities and build on our highly successful track record. "
CA and QuadReal will continue to focus on investment opportunities to develop and acquire student housing communities that are pedestrians to large, research-oriented university systems that offer world-class undergraduate and graduate programs.