Campus Apartments, Inc., the oldest student housing company in the country and a leader in developing, managing and financing upscale housing for colleges and universities throughout the United States, today announced a billion dollar venture with GIC Real Estate Pte Ltd (GIC RE), the real estate investment arm of the Government of Singapore Investment Corporation. This marks the first time that privately owned Campus Apartments has brought in an institutional investor.
The venture is expected to be leveraged to more than $1 billion dollars, effectively transforming Campus Apartments into one of the largest private student housing companies in the country and enabling Campus Apartments to continue its growth nationally by developing and acquiring undergraduate, graduate and faculty housing, for-sale condominiums and related mixed-use development properties, both on- and off-campus.
“This is a significant milestone for Campus Apartments as it is the first time we have sought institutional funding,” said David Adelman, president and chief executive officer of Campus Apartments. “We explored our options, including going public, and evaluated several institutional investors interested in providing capital for the venture. We decided to work solely with GIC RE because we believe this is the best course for our company and future growth. We like GIC RE’s investment philosophy and international presence.
“The venture will enable us to execute on a healthy pipeline of deals throughout the country and it catapults us into a leading position in the national college housing market. Furthermore, we believe the industry is highly fragmented and we plan to look for opportunities to consolidate and extend our role as an industry leader,” added Adelman.
“GIC RE invests globally in diverse sectors and we are looking forward to increasing our exposure to the U.S. student housing sector through this unique platform with Campus Apartments,” said Dr. Seek Ngee Huat, president of GIC RE. “We were attracted to Campus Apartments’ long history of successfully investing, developing and managing high-end campus accommodations and look forward to being part of their national expansion plans.”
Deutsche Bank Securities, Inc. served as exclusive advisor to Campus Apartments in the capital sourcing and structuring of this transaction.
About Campus Apartments, Inc.
Philadelphia, Pa.-based Campus Apartments, Inc., the oldest student housing company in the country, develops, manages, designs, and privately finances upscale housing for colleges and universities. The company has been successful in growing its holdings and now owns or manages more than 220 properties across the Eastern Seaboard and Midwest. For more than 40 years, Campus Apartments has been a pioneer in developing communities and providing turnkey solutions for colleges and universities. The company’s projects include undergraduate, graduate and faculty housing, as well as for-sale condominiums and mixed-use developments, both on- and off-campus. Campus Apartments’ university relationships comprise public-private partnerships, fee development, master leases, third-party management and long-term ground leases.
About GIC Real Estate Pte Ltd
GIC Real Estate ("GIC RE") is the real estate investment arm of the Government of Singapore Investment Corporation ("GIC"), which manages the foreign reserves of Singapore. GIC RE's mandate is to invest in real estate-related assets outside of Singapore. Its investments cover all property sectors (including office, retail, industrial, hotel or residential assets) and product types, ranging from direct building acquisitions, property investment funds to strategic stakes in publicly listed property companies, joint ventures and real estate debt. GIC RE's large and diversified portfolio comprises about 140 assets in more than 30 countries. It is one of the largest institutional investors in Asia and currently ranks amongst the world's top 20 global real estate investment firms.