Forum raises US$34.2M in first close for Canadian student housing fund
What's the deal? Forum Asset Management has completed the inaugural capital raise for Forum Student Living Fund I, securing US$34.2M in gross equity proceeds. The Toronto-based fund is a closed-end trust investing in Canadian purpose-built student accommodation, with a portfolio valued at roughly US$73.3M.
Where's the money going? The trust has acquired interests in three income-producing student housing properties and a preferred interest in one development, all in Ontario. It has also committed to a fourth income-producing property once its development is complete.
How it came together: The raise combined a US$31.8M initial public offering of trust units at US$7.33 each with private placements and a co-investment funded from Forum's balance sheet. CIBC World MarketsDealroom has a profile for this one. Try Dealroom → led the syndicate of agents, which included Canaccord GenuityDealroom has a profile for this one. Try Dealroom →, Desjardins SecuritiesDealroom has a profile for this one. Try Dealroom →, and Raymond James.
What's next? The trust has received US$2.2M in commitments for a private placement of Class B limited partnership units, expected to close within 90 days. Remaining proceeds will fund the fourth acquisition, with any excess used to expand its stakes in existing properties.
The signal: Forum, which manages the roughly US$2.13B Real Estate Income and Impact Fund, is carving out a dedicated vehicle for student housing — a niche real estate segment betting on steady rental demand tied to Canadian enrolment.
Read more: Yahoo Finance
