Lincoln, Neb. — Riyad Capital, an institutional capital partner based in the Middle East, has formed a joint venture with CapitaLand Investment Limited’s wholly-owned lodging business unit, The Ascott Limited, to develop student housing properties in the U.S. The partnership has committed $150 million in its initial equity round.
Named Student Accommodation Development Venture (SAVE), Ascott will manage the venture and hold a 20 percent stake, while the remaining stake will be held by Riyad.
The partnership has acquired its first investment, a 779-bed student housing community currently under construction near the University of Nebraska-Lincoln. The development is scheduled for completion in August 2023. With this acquisition, Ascott has invested $648.9 million in U.S. student housing properties over the course of the past year.