QuadReal Property Group has become the sole owner of one of the largest student housing providers in the United States, and is rebranding the 20,000-bed CA Student Living (CASL) business as Article Student Living.
First reported in September, the transaction involves a portfolio of properties in major U.S. university and college markets. Vancouver-based QuadReal had acquired a 50 per cent “passive” stake in the portfolio in 2020, partnering with Chicago-based CA Ventures.
This most recent transaction buys out CA Ventures’ stake in the business.
“We are thrilled to launch Article Student Living, which represents a key part of QuadReal’s long-term investment strategy in the U.S.,” Dennis Lopez, QuadReal’s chief executive officer, said in the announcement this week.
“Article’s 500 employees are passionate about elevating student living and delivering operational excellence, and we will continue to build on their existing momentum and commitment to bring a best-in-class experience to our residents and partners.”
QuadReal states the acquisition supports its “long-term investment strategy in the sector where it continues to have high conviction.”
The Article Student Living website lists 49 current properties under the brand and one under development, The Archive at Yale University in New Haven, Conn.
QuadReal an investor in CASL
QuadReal has been involved with CASL since 2017 when it began investing in individual properties and developments alongside CA Ventures.
It acquired the 50 per cent stake in October 2020 in a transaction which valued the company at about $4 billion (all figures US) at that time.
The full acquisition, QuadReal states, will allow it to combine capabilities, resources and best practices.
“We have witnessed firsthand QuadReal’s unwavering commitment to the success of our team since we first partnered,” said Thierry Keable, the president of Article Student Living, in the announcement. “Today marks an important milestone in our journey together.
“Our new brand represents our commitment to deliver quality and strong performance. At Article Student Living, we strive to offer students more than a place to stay. We build and provide vibrant hubs of learning and connection.”
CASL had been beset by delays at several of its under-construction properties in the U.S. in recent months, as well as a series of legal actions in U.S. courts, according to reporting done by The Real Deal.
“On September 21, 2023, we took the step to fully acquire the CASL business to protect the employees, residents, our assets and other investors that own real estate with CASL,” QuadReal told The Real Deal in a statement.
CA Ventures also operates a European student housing business, headquartered in London, which is not a part of this transaction.
QuadReal Property Group is a global real estate investment, operating and development company with approximately $73.8 billion in assets under management.
From its foundation in Canada as a full-service real estate operating company, QuadReal has expanded its capabilities to invest in equity and debt in both the public and private markets.
QuadReal invests directly, via programmatic partnerships and through operating companies in which it holds an ownership interest.