Global leader in student housing – Global Student Accommodation (GSA) – continues to build momentum in the US with the acquisition of four purpose-built student accommodation (PBSA) assets, totalling 1,450 beds from Rael Development Corporation, a real estate investment and development firm.
The properties will be re-branded under, and managed by, Yugo – GSA’s global operating partner. Yugo’s student led and sustainable approach is a key differentiator in the US student housing market, with unique initiatives to support students’ journeys through higher education.
“I’m delighted to be bringing Yugo’s operational expertise to these properties and creating a unique student customer proposition in partnership with GSA. Our presence in existing markets creates significant operational synergies and enables us to deliver enhanced value, while providing an entry point into a new city. It’s a really exciting time for Yugo.”Aly El-Bassuni, Chief Executive Officer, Yugo
The new acquisition follows GSA’s announcement two months ago on a joint venture (JV) partnership with a fund managed by Morgan Stanley Real Estate Investing (MSREI), with a strategic vision to become a leader in the US student housing. The company also acquired its second US PBSA portfolio in December 2021, which totals over 8,100 student beds.
This new acquisition delivers against GSA’s plan to actively pursue strategic growth in the US with MSREI as a long-term partner, as well as its wider strategy to increase geographical diversification as a global provider of student housing.
The acquisition also marks GSA’s entry into Fayetteville, Arkansas – adding the prestigious Power-5 school of the University of Arkansas to its expansive portfolio. The remaining three assets are located in GSA’s existing markets, consolidating the company’s presence and creating significant operational synergies.
“This is another important acquisition for GSA, and the first following the establishment of our US JV with Morgan Stanley Real Estate Investing. It signals our deliberate growth strategy in action and our focus on delivering long term income growth.”Robin Moorcroft, Transaction Director, GSA
GSA’s portfolio is now present in 29 cities and 22 states across the US. All properties in the latest transaction are located close to Power-5 or Group of 5 schools and demonstrate the strong fundamentals that underpin this resilient sector. GSA has experienced unparalleled growth in the US since entering the market in December 2020, and the company is ideally positioned to secure further pipeline opportunities as specialists in the PBSA sector.