Campus Crest Communities Inc.
) - 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
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
Avalonbay Communities Inc.
Camden Property Trust
Essex Property Trust Inc.
). All these stocks carry a Zacks Rank # 2.
AVALONBAY CMMTY (AVB): Free Stock Analysis
CAMPUS CREST CM (CCG): Free Stock Analysis
CAMDEN PPTY TR (CPT): Free Stock Analysis
ESSEX PPTY TR (ESS): Free Stock Analysis
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