Campus Crest Forms JV to Enter Canada - Analyst Blog
July 11 2013 - 11:00AM
Zacks
Campus Crest Communities Inc. (CCG) – a real
estate investment trust (REIT) recently disclosed a joint venture
(JV) with Beaumont Partners SA for foraying into the Montréal
Student Housing Market. The JV purchased the 33-story Delta
Centre-Ville Hotel in downtown Montréal, Québec for approximately
$60 million. The move comes as part of its efforts to expand its
operational footprint.
The JV plans to convert the hotel into a student housing tower and
seek redevelopment financing later this year. The renovation is
scheduled to be accomplished by the fall of 2014 with leasing to
commence in the fall of 2013. Campus Crest, which currently has a
20% stake in the JV, has made the purchase at a discount to the
replacement cost.
Advantageously positioned above the Square-Victoria Metro Station
stop, this property enjoys easy access to the McGill University,
Concordia University and L’École de Technologie Supérieure - a part
of the Université du Québec network - serving over 81,500 full-time
students. As per the JV, Campus Crest will serve as a property
manager.
We expect this JV acquisition to be a strategic fit for the
company, given the property’s premium location. Moreover, this
project in Canada represents Campus Crest’s second urban, high-rise
development, the first being a JV to develop a 33-storied student
housing tower in University City, Philadelphia. This 850-bed
facility is slated to be completed in the fall of 2014.
Campus Crest, which currently has a Zacks Rank # 2 (Buy), is a
developer, builder, owner and manager of high-quality,
purpose-built student housing properties located close to campuses
in targeted U.S. markets. The company rents student housing
properties, offers student housing services and provides
construction, development and management services.
A number of other REITs that are also performing well and deserve
look are Avalonbay Communities Inc. (AVB),
Camden Property Trust (CPT) and Essex
Property Trust Inc. (ESS). All these stocks carry a Zacks
Rank # 2.
AVALONBAY CMMTY (AVB): Free Stock Analysis Report
CAMPUS CREST CM (CCG): Free Stock Analysis Report
CAMDEN PPTY TR (CPT): Free Stock Analysis Report
ESSEX PPTY TR (ESS): Free Stock Analysis Report
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