Bahrain-based financial investment group GFH Financial Group has agreed to acquire a $100 million student housing portfolio in the United States in partnership with Student Quarters, an Atlanta based specialist asset manager.
The assets acquired include student housing buildings and facilities near the University of Arkansas, Florida State University and University of Tennessee.
”Over the past year, the student housing market has remained a strong performing sector with approximately 90% average occupancy levels and nearly 100% rental collections, which are backed by parental guarantees. Given the increasing pace at which the US economy is recovering, with the vaccination drive successfully implemented, the prospects for the student housing sector have a positive outlook, making it the optimal environment for GFH to deploy capital in the sector,” said GFH in a statement.
“As part of GFH’s growing real estate activities and investments, we’re delighted to initiate our investments in another strategic segment of the US real estate market, the student housing sector. This is another step in further building a diversified portfolio of well positioned, stabilized real estate assets. With scarce comparable supply in flagship universities and growing student enrolment numbers, we see strong prospects for the sector, which we will work to leverage with our partner, Student Quarters, who brings deep rooted knowledge of the US student housing market and an exceptional track record to support income and value generation for GFH and our shareholders,” said Awais Majeed, Executive Director Real Estate Investments at GFH.
“Student Quarters and GFH Financial Group are really excited to be purchasing these high-quality well-located assets in exceptional Power Five markets. These will be the first acquisitions for the new partnership, which will bring compelling investment opportunities and demonstrated results to GFH,” said Stephanie J. Lynch, Chief Investment Officer of Student Quarters.