PGIM Real Estate has provided $108.5 million in fixed-rate financing on behalf of its core investment strategy to a fund managed by Morgan Stanley Real Estate Investing (MSREI) and Global Student Accommodation (GSA) for five student housing properties. PGIM Real Estate is the $204.4 billion real estate investment and financing business of PGIM.
The five student housing assets total 548 units with 1,619 bedspaces supporting the University of Texas at Austin, Northern Arizona University, and College of Charleston with an average distance to campus of 0.12 miles. The assets were acquired in September 2022, have been rebranded and are now managed by Yugo, GSA's global operating partner.
"PGIM Real Estate is thrilled to partner with this sponsorship to expand our student housing portfolio, a resilient property sector where we expect fundamentals will remain strong," said Tom Goodsite, managing director at PGIM Real Estate, who led the financing on the firm's behalf. "Despite the current economic environment and rising interest rates, PGIM Real Estate remains active in the market and continues to provide financing for our clients in sectors and across locations where we have conviction."
"On behalf of the joint venture partnership, I am delighted to be embarking upon this new relationship with PGIM Real Estate in the U.S.," said John Jacobs, global head of Capital Markets for GSA. "The deal is well aligned to our long-term debt strategy and provides an optimal source of financing for this recently acquired portfolio. The transaction has unlocked capital to further invest in our existing student housing portfolio, while growing our footprint in the region through targeted acquisitions."