CCG & Beaumont Partners SA Form JV To Enter Montréal Student Housing Market
July 09 2013 - 7:30AM
Business Wire
Campus Crest Communities, Inc. (NYSE:CCG) and Beaumont Partners
SA (“Beaumont”) today announced a joint venture partnership that
acquired the 711 room, 33-story Delta Centre-Ville Hotel in
downtown Montréal, Québec with plans to convert it into an upscale
student housing tower.
The joint venture, which is owned 20% by Campus Crest and 80% by
Beaumont, paid approximately $60 million for the property,
including closing costs, fees and reserves. The partnership expects
to obtain redevelopment financing later this year to fund the
conversion of the hotel into an upscale student housing tower
featuring a mix of single and double units. The redevelopment of
the tower is slated to be completed for the fall of 2014, with
leasing to begin in the fall of 2013.
“We are excited to align ourselves with Beaumont to acquire an
asset in an irreplaceable location in the heart of downtown
Montréal at discount to replacement cost,” said Ted W. Rollins,
Co-Chairman of the Board and Chief Executive Officer of Campus
Crest. “We have been evaluating the Canadian market for years and
believe this is the right opportunity with the right partner to
bring our unique brand of student housing to our North American
neighbors. Not only will this allow us to expand our operational
footprint, but we will be entering one of Canada's most prestigious
academic cities with a rich cultural heritage and serving nearly
200,000 students.”
“The Delta Centre-Ville Hotel acquisition provides a unique
entry point to the Canadian student housing market,” said Toby
Selman, Managing Director of the Real Estate Group of Beaumont
Partners. “We believe that Campus Crest is the natural partner for
us and immediately positions us as a leader in the Montréal market.
We look forward to significant additional investment in Montréal
and expanding our relationship with Campus Crest here as well as in
other Canadian markets.”
Situated above the Square-Victoria Metro Station stop, the
Montréal acquisition offers easy access to McGill University,
Concordia University and L’École de Technologie Supérieure (ÉTS), a
part of the Université du Québec network, which collectively serve
more than 81,500 full-time students. The property is conveniently
located in the heart of downtown Montréal, within walking distance
of Old Montréal, the Bell Centre sports and entertainment complex,
the Central Train Station and numerous dining and cultural
attractions. Once completed, the property will include a broad
array of high-end appointments and expects to attract undergraduate
and graduate students by offering an upscale housing alternative
with modern, attractively furnished rooms and a range of amenities
including a media lounge, fitness center, library and a technology
center. Ample common areas including numerous study lounges will be
designed to accommodate social and academic interaction. To foster
a sense of community and promote resident engagement, the property
will regularly host a variety of activities. Residents will be
served by a highly trained, professional staff that includes a
general manager, leasing manager, community assistants and a
courtesy officer for security purposes. As part of the joint
venture agreement, Campus Crest will serve as property manager.
In addition to marking Campus Crest’s entry into Canada, the
project is the Company’s second urban, high-rise development. In
February, Campus Crest announced a joint venture partnership to
develop a 33-story, 850-bed student housing tower in University
City, Philadelphia, which is also targeted for completion in the
fall of 2014.
About Campus Crest Communities, Inc.
Campus Crest Communities, Inc. is a leading developer, builder,
owner and manager of high-quality student housing properties
located close to college campuses in targeted U.S. markets. It has
ownership interests in 84 student housing properties and over
44,002 beds across the United States, of which 72 are operating and
12 are development or redevelopment properties. The Company is an
equity REIT that differentiates itself through its vertical
integration and consistent branding across the portfolio through
two unique brands targeting different segments of the college
student population. The Grove® brand offers more traditional
apartment floor plans and focuses on customer service, privacy,
on-site amenities and a proprietary residence life program. The
Copper Beech brand and townhome product offers more
residential-type living to students looking for a larger floor plan
with a front door and back porch. Additional information can be
found on the Company's website at http://www.campuscrest.com.
About Beaumont Partners SA
Beaumont Partners is an international private equity and real
estate investment company based in Geneva and London. Its real
estate strategy is to acquire and build specialised investment and
operating platforms within several target sectors. The principals
have a long and successful track record in private equity
investments and specifically in partnering with specialised real
estate management teams to build niche platforms. The principals
have invested in over $4.0 billion of global real estate over the
past 20 years.
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