US sector operator The Scion Group has formed a new strategic partnership with global asset manager Ares Management Corporation to target off-campus student accommodation. The joint venture aims to invest in premium properties across the United States, targeting university markets defined by expanding student enrolments and tight property supply.

The partnership has marked its launch by purchasing a major 12-property portfolio for roughly $910 million (£716 million). Spanning 7,578 student beds, the accommodation serves several top-tier American institutions, including James Madison University, The Ohio State University and the University of Notre Dame. Scion will manage day-to-day operations for the properties.

Following this transaction, Scion has officially become the largest owner of off-campus student housing globally. The firm has deployed approximately $10.2 billion in capital since 2016, with $3.4 billion spent within the last 24 months. Its total owned footprint now covers over 105,000 student beds across 161 communities in 90 distinct US markets. Corporate leadership noted that the purchase reflects a broader shift as institutional finance transitions into operationally intensive, need-based real estate sectors.

“This transaction represents important milestones for Scion,” said Robert Bronstein, Chief Executive Officer of The Scion Group. “We are beginning a partnership with Ares, one of the leading asset management firms globally, at the same time Scion’s owned portfolio now totals over 105,000 beds, making Scion the world’s largest owner of student housing. This sector continues to demonstrate resilient demand characteristics, and we are pleased to expand our platform alongside Ares.”

“This transaction underscores Ares Real Estate’s ability to execute on large, complex opportunities through our scale, sector experience and operating relationships,” said Andrew Holm, Head of U.S. Diversified Equity for Ares Real Estate. “By combining our scaled real estate platform with Scion’s strong capabilities, we believe we are well positioned to unlock value across this portfolio and capitalize on the continued institutionalization of the student housing sector.”