Ares and Scion Group Acquire Four US Student Housing Properties for $435 Million

1-Minute Brief

This acquisition highlights ongoing investment activity in student housing amid changing funding and enrollment trends in the sector.

Key Facts

• Ares Management Corp. funds and The Scion Group purchased four US student housing communities for about $435 million.
• The deal marks the second transaction for the partnership between Ares Management and The Scion Group.
• Mike Gordon of Harrison Street Asset Management commented on the importance of specialization in student housing due to funding cuts and enrollment trends.
• Harrison Street Asset Management is identified as one of the largest investors in student housing.
• The acquisition underscores continued investor interest in the US student housing market.

What Happened

Ares Management Corp. funds and The Scion Group acquired four US student housing communities for approximately $435 million, marking their partnership's second deal.

Why It Matters

The transaction reflects sustained investment in student housing despite sector challenges such as funding cuts and shifting enrollment patterns, as noted by industry participants.

What's Next

Observers may monitor how investor strategies adapt to evolving market conditions, including potential impacts on student housing supply and specialization.