March 16, 2017 / 1:28 PM / 3 years ago

CPPIB joint venture buys U.S. student housing portfolios for $1.6 billion

(Reuters) - Canada Pension Plan Investment Board (CPPIB), Singapore wealth fund GIC and property owner Scion Group LLC said on Thursday their joint venture had bought three U.S. student housing portfolios for about $1.6 billion, in its second major deal in the United States.

CPPIB, which manages Canada’s national pension fund and is a major global dealmaker, had formed the student housing joint venture with GIC and Scion in January last year.

Canadian pension funds have been buying real estate assets around the world to diversify their investments.

CPPIB and GIC will each own a 45 percent stake in the three portfolios and Scion Group will own the remaining 10 percent.

The companies said on Thursday their joint venture, Scion Student Communities LP, plans to buy more student housing properties in the United States.

The parties struck a similar deal for a student housing portfolio early last year, buying University House Communities Group and its 19 properties for $1.3 billion.

Reporting by Komal Khettry in Bengaluru; Editing by Sai Sachin Ravikumar

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