Student record

Bahrain’s GFH Acquires $300M US Student Housing Portfolio

Bahrain-based investment bank GFH Financial Group has acquired a US student housing portfolio in partnership with its Atlanta-based subsidiary, Student Quarters (SQ), in a deal worth $300 million as the industry continues to grow.

It acquired five assets, including buildings within walking distance of Texas A&M University, Michigan State University and Missouri State University, GFH said in a filing on Thursday at the Abu Dhabi Stock Exchange, where its shares are negotiated.

The portfolio has more than 2,000 beds, with buildings featuring amenities such as swimming pools, courtyards, cafes, study lounges, clubs, game rooms and fitness centers.

The student housing sector is “seeing positive momentum, given increasing US college enrollment, the growing US population, and the scarcity of purpose-built Class A walkable assets,” Nael said. Mustafa, co-director of real estate investments at GFH. .

GFH has focused on international expansion. It set up its US operations in May by acquiring a majority stake in SQ Asset Management, which focuses on student housing.

The U.S. student housing market had a near-record year of transactions in 2021, surpassing $10 billion in investment sales volume, according to a CBRE report.

This volume was exceeded in the history of the sector only in 2018, according to the report.

As part of its student housing investment strategy, GFH aims to build a diversified portfolio focused on the top 150 public universities in the United States, he said.

These are institutions with “strong academic and athletic facilities and have seen consistent year-over-year enrollment growth,” GFH said.

“The student housing sector has performed well historically, even during the pandemic, as evidenced by a stable average occupancy rate well over 90% and a correspondingly high rent collection rate,” the bank said. investment.

“Overall, the sector has experienced supply shortages with the need for purpose-built student accommodation assets that are within walking distance of Tier 1 institutions across the country, spurred by rising enrollment and the limited availability of university-provided accommodation.”

GFH has an investment portfolio that spans the Middle East, US, UK and Asia across a number of sectors including healthcare, education and logistics.

Last year, it closed more than $1 billion in new investments in these segments, with its assets growing about 23% to $8.08 billion at the end of 2021.

Updated: July 07, 2022, 07:56

!function(f,b,e,v,n,t,s) {if(f.fbq)return;n=f.fbq=function(){n.callMethod ? n.callMethod.apply(n,arguments):n.queue.push(arguments)}; if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′; n.tail=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)}(window, document,’script’, ‘https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘797427810752825’); fbq(‘track’, ‘PageView’);