CHC Student Housing Corp. announced it is joining forces with Dundee Acquisition to create one of Canada’s largest student housing owner-operators. The combined entity will manage 4,700 beds in 20 properties across 13 markets.
Led by CHC CEO Mark Hansen, the new company will be renamed Canadian Student Living Group.The total transaction is valued at $420 million, and the company expects to have 100% ownership of 11 properties and a 50 per cent interest in nine co-owned properties.
CHC and Dundee see student housing as an attractive asset class because it is considered underdeveloped in Canada, where only three per cent of post-secondary students live in purpose-built housing — compared with 12 per cent in the United States and 23 per cent in the United Kingdom.
The two companies expect the transactions to be completed in November.
“We are extremely excited about this transaction and believe it creates a strong platform going forward for the benefit of all current CHC stakeholders,” said Mark Hansen, in a joint statement issued August 25. “The DAQ team has done a great deal to help create CSL, and position it to be a market leader in Canadian student housing with a world class portfolio of high-quality operating assets.”