GFH Partners buys $300m US student housing asset portfolio
RIYADH, November 24, 2024
GFH Partners, the DIFC based global asset management arm of GFH Financial Group, has announced that it has successfully secured A-Class purpose built student housing assets worth $300 million in the US.
The assets have been added to GFH Partners’ US student housing platform, which now has more than 5,500 beds and assets under management worth approximately $900 million.
The assets are presently 99% occupied and are within pedestrian distance to major public four-year universities, with enrollments exceeding 30,000 students per academic year.
These include two assets serving the University of North Texas (859 beds), an asset targetting student accommodation for the University of Kentucky (649 beds), and a development project within close proximity to the University of Tennessee set to deliver around 605 beds upon completion in 2026.
The three markets benefit from strong enrollment growth in their respective universities and have limited supply thus allowing for higher occupancy and stronger rental growth.
GFH Partners has executed the above transactions in partnership with SQ Asset Management, an Atlanta based student housing operator founded in 2013 with over 15,000 beds under management; and Vesper Holdings, a New York based operator founded in 2007 with over 30,000 beds under management.
On the secured transactions, CEO Nael Mustafa said: "These acquisitions build on our strong track record and proven capability in the student housing sector. The assets secured deliver attractive risk-return profile opportunities to our investors."
"We continue to see merit in deploying capital in this sector due to the demand-supply imbalances in leading, four-year public universities with strong research and/or sporting programs. Our partnerships with proven managers like SQ and Vesper are strategic and ensure best-in-class execution of our activities in this sector," he added.-TradeArabia News Service
