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Campus Crest Communities, Inc. (NYSE:CCG) and Beaumont Partners SA (“Beaumont”) today announced a joint venture partnership that acquired the 711 room, 33-story Delta Centre-Ville Hotel in downtown Montréal, Québec with plans to convert it into an upscale student housing tower.
The joint venture, which is owned 20% by Campus Crest and 80% by Beaumont, paid approximately $60 million for the property, including closing costs, fees and reserves. The partnership expects to obtain redevelopment financing later this year to fund the conversion of the hotel into an upscale student housing tower featuring a mix of single and double units. The redevelopment of the tower is slated to be completed for the fall of 2014, with leasing to begin in the fall of 2013.
“We are excited to align ourselves with Beaumont to acquire an asset in an irreplaceable location in the heart of downtown Montréal at discount to replacement cost,” said Ted W. Rollins, Co-Chairman of the Board and Chief Executive Officer of Campus Crest. “We have been evaluating the Canadian market for years and believe this is the right opportunity with the right partner to bring our unique brand of student housing to our North American neighbors. Not only will this allow us to expand our operational footprint, but we will be entering one of Canada's most prestigious academic cities with a rich cultural heritage and serving nearly 200,000 students.”
“The Delta Centre-Ville Hotel acquisition provides a unique entry point to the Canadian student housing market,” said Toby Selman, Managing Director of the Real Estate Group of Beaumont Partners. “We believe that Campus Crest is the natural partner for us and immediately positions us as a leader in the Montréal market. We look forward to significant additional investment in Montréal and expanding our relationship with Campus Crest here as well as in other Canadian markets.”