GFH Partners Acquire Student Housing Assets Worth $300 Million in US

GFH Partners Ltd, the Duabi International Financial Centre (DIFC)-based global asset management arm of GFH Financial Group, on Sunday announced that it has secured A-Class purpose built student housing assets worth $300 million in the US.

The assets have been added to GFH Partners’ US student housing platform which now has more than 5,500 beds and assets under management worth approximately $900 million. The assets are presently 99% occupied and are within pedestrian distance to major public four-year universities, with enrolments exceeding 30,000 students per academic year.

They include two assets serving the University of North Texas (859 beds), which is targeting student accommodation for the University of Kentucky (649 beds), and a development project within close proximity to the University of Tennessee set to deliver around 605 beds upon delivery in 2026.

The three markets benefit from strong enrolment growth in their respective universities and have limited supply thus allowing for higher occupancy and stronger rental growth, GFH Partners said in a disclosure with Abu Dhabi Securities Exchange (ADX).

GFH Partners has executed the above transactions in partnership with SQ Asset Management, an Atlanta based student housing operator founded in 2013 with over 15,000 beds under management; and Vesper Holdings, a New York based operator founded in 2007 with over 30,000 beds under management.

GFH Partnewrs CEO Nael Mustafa said that these acquisitions were built on their strong track record and proven capability in the student housing sector. The assets secured deliver attractive risk-return profile opportunities to the company’s investors, which continues to see merit in deploying capital in this sector due to the demand-supply imbalances in leading, four-year public universities with strong research and/or sporting programs.

“Our partnerships with proven managers like SQ and Vesper are strategic and ensure best-in-class execution of our activities in this sector,” he added.

Other Assets

Besides student housing assets, the company has also been investing in other assets such as industrial real estate and logistics and has closed its seventh fund valued $300 million in the US in July this year. With this, the fund’s portfolio included 25 industrial and transportation logistics assets in more than seven locations across the US.

Industrial assets within the Fund include six Class A, newly built mission-critical properties. The assets are well- diversified in terms of location, space usage, and tenant base with long-lease terms and investment grade occupants such as Tesla, Teleflex, Tower Health, and UGI Energy Services.

The industrial real estate sector, unlike other real estate asset classes, has the potential to continue displaying strong growth in key metrics largely driven by the positive market fundamentals and growing demand for industrial space. Given the limited supply in the market and low vacancy rates, the sector is prevailing across the US.

The fund’s transportation logistics assets are comprised of around 20 small to medium sites used for truck parking/ servicing, sorting and fulfilment of goods, and electrical vehicle battery charging, loading/ unloading, and transportation worker facilities.