Connor, Clark & Lunn Infrastructure and Bestinver Acquire Northside Student Housing Majority Stake

Major Stake Acquisition in Northside Student Housing

On January 13, 2025, Connor, Clark & Lunn Infrastructure (CCL Infrastructure) along with Bestinver Infra announced their joint acquisition of a majority stake in the Northside student housing project. This project, located at the University of Texas at Dallas (UTD), comprises approximately 1,200 units capable of accommodating over 2,500 students. The acquisition represents a significant addition to both firms' investment portfolios, marking their entry into the student housing sector.

Investment Details

The Northside property was developed in four phases between 2016 and 2021. Currently managed by Balfour Beatty, which retains a minority equity stake, this complex is structured under long-term land leases with UTD, securing an average remaining term of over 50 years across its many facilities.

The acquisition of Northside comes from the funds previously managed by Tikehau Capital North America LLC, known as Tikehau Star Infra. This strategic move aligns with CCL Infrastructure's commitment to acquiring stable, revenue-generating assets with a potential for steady cash flows.

UTD's Role

The University of Texas at Dallas is recognized as one of the leading public universities in Texas, offering over 140 academic programs and serving around 30,000 enrolled students. The Northside project not only provides essential services for the university's students but also supports a growing student population.

Matt O'Brien, President of CCL Infrastructure, expressed enthusiasm for this strategic acquisition, highlighting the project's potential to diversify their investment offerings. He stated, "Northside provides an essential service to UTD's student community and supports a sizeable and growing enrollment base. We look forward to working with our partners and UTD in the successful operation of Northside for years to come."

Francisco del Pozo, Head of Infrastructure Funds at Bestinver, added, "Our investment in Northside underscores our continued focus on high-quality, stable, and resilient assets in North America, and is the first of several investments we will make in the region through our Fund II."

Analytical Insights

The student housing market is witnessing significant growth, fueled by increasing enrollment numbers across various universities in the U.S. The acquisition of Northside places both Connor, Clark & Lunn Infrastructure and Bestinver in a strategically advantageous position within this burgeoning sector. As students continue to seek quality housing options that meet their needs, investments like this are set to yield promising returns.

Advisors in the Deal

The transaction involved several advisory firms to ensure a smooth process. Agentis Capital acted as a financial advisor, White & Case LLP provided legal counsel, while Deloitte served as the accounting and tax advisor. Furthermore, Infrata contributed its expertise as the technical advisor for both CCL Infrastructure and Bestinver during this acquisition.

Conclusion

This acquisition marks a significant milestone for Connor, Clark & Lunn Infrastructure and Bestinver as they expand their influence in the North American infrastructure landscape. By focusing on high-quality investments, these firms are not only enhancing their portfolios but are also contributing to the overall improvement of student living conditions, fostering a supportive environment for academia.

As the Northside project continues to evolve, it may serve as a model for further investments in student housing, setting the stage for future opportunities in the sector. The collaboration of CCL Infrastructure and Bestinver illustrates a forward-thinking approach to campus living and investment facts that could pave the way for future developments in the educational real estate market.