Morgan Stanley unit, Scion Group in $262M deal for student housing

Morgan Stanley (NYSE:MS) Investment Management funds managed by Morgan Stanley Real Estate Investing, and The Scion Group formed a joint venture to acquire a portfolio of student housing in Oxford, Mississippi, for $262M, the companies said on Tuesday.

The properties are within two miles of the University of Mississippi campus and consist of 600 apartments, town homes, and cottages with more than 2,000 beds.

“The dramatic supply-demand dynamics in the region have led to notable financial performance for these assets, which we expect to continue as the university continues to experience strong enrollment,” said Will Milam, head of U.S. Investments at Morgan Stanley Real Estate Investing.

The Scion Group, which has over $10B of assets under management, is the largest owner/operator of off-campus student housing communities globally. Its portfolio includes more than 94,000 beds of student accommodations in 144 communities, serving 82 college and university markets across 35 U.S. states.