- Brookfield Asset Management purchased 14 student-housing properties totaling 8.7K beds for $893M.
- The deal was struck at a 36% discount to replacement costs and a 19% discount compared to recent trades.
- Brookfield is targeting housing assets near large, public universities with growing enrollments and limited dormitory supply.
- This deal is part of Brookfield’s broader $5B push into North American residential assets.
Brookfield Asset Management Ltd. (BN) has expanded its residential holdings by acquiring an $893M US student-housing portfolio.
Deal Details
According to Bloomberg, the 14 properties, housing 8.7K beds (around 621 beds per property), serve major higher education institutions like Texas A&M University, Dartmouth College, and Indiana University.
According to Brookfield, their purchase price is a 36% discount to replacement costs and 19% below recent transaction values.
Notably, this acquisition represents a shift for Brookfield, which sold over $10B in housing assets between 2020 and 2022.
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Attractive Fundamentals
Brookfield’s interest in housing assets aligns with its focus on areas where supply-demand fundamentals remain favorable.
“We started searching for new opportunities where we still saw really attractive supply-demand fundamentals,” explained Ben Brown, managing partner at Brookfield’s real estate group.
The asset manager has actively acquired residential properties this year, including 10 market-rate apartment complexes in the US Sun Belt and Midwest regions, contributing to a grand total of $5B in housing acquisitions.
For student housing, Brookfield prioritizes properties near large, public universities with growing enrollments, particularly in areas with limited dormitory supply.
Opportunities Despite Higher Rates
Higher interest rates have pressured asset yields and values, creating buying opportunities for investors like Brookfield. The firm continues to pivot its strategy to capitalize on market resets, acquiring assets with robust demand fundamentals.
The student housing deal signals Brookfield’s confidence in residential real estate and its strategic approach to investing in discounted, high-demand housing markets.
