Target Information

Forum Asset Management, headquartered in Toronto, Ontario, has announced a strategic investment from Brookfield Asset Management aimed at facilitating its acquisition of Alignvest Student Housing. Brookfield will invest up to $100 million into Forum's private REIT, the Forum Real Estate Income and Impact Fund (REIIF). This fund is valued at $2.4 billion and is recognized as a leading owner and investor in purpose-built student accommodations across Canada. REIIF is strategically positioned to meet the increasing demand for accessible, high-quality housing for students, backed by strong ESG principles for improved risk-adjusted returns. Currently, REIIF encompasses 31 high-quality properties, providing approximately 10,500 student beds across key university markets.

Brokfield has an extensive global portfolio that includes over 60,000 student accommodation beds across Europe, the United States, and the United Kingdom, now expanding into Canada through this partnership with Forum. The investment from Brookfield is supported by the robust long-term supply-demand dynamics within the Canadian student housing sector and the institutional strength of REIIF’s portfolio.

Industry Overview in Canada

The student housing market in Canada has seen significant growth in recent years, driven by a strong influx of international students and an increasing domestic student population. The demand for purpose-built student housing surpasses supply, making this sector an attractive area for institutional investors. As universities continue to expand and adapt to growing enrollment figures, the pressure for adequate housing solutions is likely to intensify.

Furthermore, Canadian cities are experiencing urbanization trends that spotlight the need for housing solutions that cater specifically to students. The integration of sustainable practices within this sector is becoming increasingly important, not just for regulatory compliance but also for attracting socially conscious investors. The increasing role of ESG factors helps further elevate the standing of investment vehicles like REIIF.

In response, many educational institutions are collaborating with private sector developers to enhance the availability of accommodations that meet modern expectations. The result is a flourishing landscape for high-quality student housing, which is expected to see continued investment in the coming years.

Given the resilience of the Canadian economy and the solid fundamentals within the real estate market, particularly in student housing, the outlook appears promising for future investments in this sector.

Rationale Behind the Deal

The investment made by Brookfield is a strategic endorsement of Forum's investment thesis within the Canadian student housing market. The partnership serves to enhance REIIF’s financial flexibility, enabling more robust portfolio growth, and thus addressing the urgent need for professionally managed student housing solutions across Canada.

With Brookfield’s significant experience in real estate and student housing globally, this collaboration provides Forum with added credence. The investment highlights the significant opportunities for large-scale institutional investments in a market segment that is still developing in Canada.

Information about the Investor

Brookfield Asset Management is a premier global alternative asset manager with a substantial portfolio across various sectors including real estate, infrastructure, renewable power, and private equity. With an emphasis on sustainable investing, Brookfield manages over $700 billion in assets worldwide across multiple strategies.

Specifically within the real estate sector, Brookfield has developed an extensive portfolio that includes over 60,000 student accommodation beds, reflecting its commitment to addressing the growing global demand for quality housing solutions. This investment in Forum not only expands their influence into the Canadian market but also adds value through the integration of best practices gleaned from their global experience.

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The partnership between Brookfield and Forum Asset Management raises several positive considerations for stakeholders in the student housing sector. This strategic investment is likely to yield beneficial outcomes as it brings together two well-respected entities with strong expertise in real estate and student accommodation.

First, Brookfield’s involvement provides validation of the market potential for Canadian student housing, which may encourage further institutional investment in the sector. This could catalyze additional developments that address the housing needs of students in major university towns across Canada.

Second, the influx of capital from Brookfield will enhance REIIF's operational capabilities, allowing for aggressive growth without compromising on quality. This positions the fund to effectively meet the growing demand for purpose-built student housing, enhancing returns for investors while contributing positively to the communities in which they operate.

Lastly, the focus on ESG factors within the framework of this investment not only creates value for investors but also aligns with shifting societal expectations regarding responsible investing. This alignment may attract additional socially conscious investors and further strengthen the brand reputation of both Forum and Brookfield.

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