Morgan Stanley’s (MS) investment management arm and Global Student Accommodation acquired a U.S. student housing portfolio from Abu Dhabi Investment Authority and Landmark Properties in a transaction valued at more than $1B, the companies said on Wednesday.
The off-market transaction expands the partnership’s reach into new markets of Virginia, Georgia, and Pennsylvania, while significantly expanding its presence in established markets such as Texas, Florida, Oregon, and North Carolina.
The off-market transaction consists of 6,200 beds across eight assets near top-ranking universities, adding to Morgan Stanley Real Estate Investing’s and GSA’s diverse portfolio, GSA said. The assets, with nearly 100% occupancy, cater to students at universities including University of Virginia, University of Florida, Texas A&M, and Penn State University.
MSREI and GSA’s U.S. portfolio now holds 50 properties across 36 cities and 23 states and almost 24,000 beds.
“This student housing portfolio fully aligns with our strategy to acquire high-quality, resilient assets in prime locations,” said Will Milam, head of U.S. Investments at Morgan Stanley Real Estate Investing.
Morgan Stanley (MS) stock rose 0.3% in Wednesday premarket trading.