Alignvest Student Housing REIT (ASH REIT) has expanded its portfolio in Waterloo, Ont., with the acquisitions of twin 21-storey student residential towers at 252 and 254 Phillip St.

Alignvest did not release financial details of the transaction in the announcement.

The buildings are known as Hespeler House and Fergus House. They are both purpose-built student accommodations (PBSA) and contain a total of 476 beds in fully furnished units which contain four bedrooms and four bathrooms.

 "With the closing of our acquisitions of Hespeler House and Fergus House, ASH REIT has completed four transactions in the first half of 2024 totaling 1,705 beds and $384 million,” Sanjil Shah, Alignvest’s managing partner, said in the announcement.

“We are excited to further solidify our position in Waterloo and believe these assets will benefit from the scale ASH REIT has in the market. Hespeler House and Fergus House are strategically located near the University of Waterloo, whereas our other assets in Waterloo primarily serve students attending Wilfrid Laurier University. 

“In total, we now provide housing for over 6,900 students in six major higher-education markets across Canada."

Four-tower PBSA development

Hespeler House and Fergus House are part of a recently developed four-tower complex which had been operated by Rez-One. The property also includes Blair House and Elora House, towers similar in design and function to Hespeler and Fergus.

In total, the area known as Phillip Square accommodates 2,602 students and had been operating at 100 per cent occupancy.

The properties are a few hundred metres from the University of Waterloo campus and within walking distance from Wilfrid Laurier University. They offer a variety of amenities including fitness rooms, study rooms, a fully enclosed theatre room, games rooms, a basketball court, underground parking, bicycle parking and on-site laundry.

Alignvest’s portfolio comprises a total of 16 properties in six cities - also including Hamilton, Oshawa and Ottawa in Ontario, as well as Halifax and Edmonton. Its assets are valued at approximately $1.35 billion, according to the company.

It’s previous acquisitions in 2024 are: 

• 308 King St., a 25-storey, 340-apartment tower which accommodates 659 students in Waterloo; and
• 417 Nelson St., in Ottawa, a four-storey property which accommodates 94 beds in 53 units ranging from one to three bedrooms.