Investcorp Strengthens US Student Housing Portfolio with $300M Deal

Investcorp, a global leader in alternative investment, has completed the acquisition of four student housing properties at major universities in the United States. The portfolio, totaling 3,000 beds, was secured at a transaction cost exceeding $300 million. This strategic investment amplifies Investcorp's presence in pivotal college markets, underpinning its commitment to enhancing off-campus student housing facilities across flagship state universities. The properties are notably near Texas A&M University, Texas State University, the University of Kentucky, and the University of Oklahoma, all demonstrating high occupancy rates. Michael O'Brien, Global Co-Head of Real Assets at Investcorp, emphasized the robust and enduring attraction of student housing, citing the dynamic combination of housing shortages at major universities and increasing enrollment as key performance drivers. The US student housing market has experienced considerable rent growth and tenant demand in 2024, poised against challenges like high interest rates and construction slowdowns. Investcorp has stated plans to implement comprehensive business strategies to sustain and upgrade these properties, fostering potential long-term value growth. The firm's extensive experience, as reflected in their management of a vast number of student housing assets, supports their ongoing real estate investment strategy and expansion within the US market.