Inventrust Properties to Sell Student Housing Platform for $1.4 Billion

InvenTrust Properties Corp. a publicly registered non-traded real estate investment trust formerly known as Inland American Real Estate Trust, entered into a definitive purchase agreement to sell its student housing platform, University House Communities Group Inc., to UHC Acquisition Sub LLC, a subsidiary of a joint venture formed between Canada Pension Plan Investment Board, GIC and Scion Communities Investors LLC.

The purchase agreement’s gross all-cash value is $1.4 billion. The transaction is expected to close in mid-2016, and the final net proceeds will be determined at the closing of the transaction.

“The sale of University House marks the culmination of our portfolio evolution strategy to focus our energies and investment capital into our multi-tenant retail platform,” said Thomas McGuinness, chief executive officer and president of InvenTrust.

McGuinness added, “While University House has been a valuable component of InvenTrust’s portfolio, we are very excited about this transaction, which represents the conclusion of a robust evaluation process to maximize the value we receive for the platform. Following this important step and the recently announced spin-off of our non-core portfolio, we remain committed to our strategy of refining and tailoring our pure-play retail platform.”

Citigroup and JP Morgan are acting as financial advisors to InvenTrust, while Skadden, Arps, Slate, Meagher & Flom LLP and Hunton & Williams LLP are acting as legal counsel.

As of September 30, 2015, InvenTrust owned 128 multi-tenant retail properties (including 18 JV assets), comprising 19 million square feet of retail space in 24 states.