InvenTrust sells University House group in $1.4 billion deal

OAK BROOK - InvenTrust Properties Corp. said it is selling its student housing platform, University House Communities Group Inc. to UHC Acquisition Sub LLC, a subsidiary of a joint venture formed between Canada Pension Plan Investment Board, GIC and Scion Communities Investors LLC, in an all-cash venture valued at $1.4 billion.

"The sale of University House marks the culmination of our portfolio evolution strategy to focus our energies and investment capital into our multi-tenant retail platform," said Thomas McGuinness, CEO and president of InvenTrust. "While University House has been a valuable component of InvenTrust's portfolio, we are very excited about this transaction, which represents the conclusion of a robust evaluation process to maximize the value we receive for the platform. Following this important step and the recently announced spinoff of our noncore portfolio, we remain committed to our strategy of refining and tailoring our pure-play retail platform."

Under the terms of the agreement, the final net proceeds will be determined at the closing of the transaction following the determination of several events and closing considerations. The transaction is expected to close in mid-2016 subject to certain closing conditions. InvenTrust intends to explore all options regarding the use of the net proceeds from the University House transaction.

"The sale of University House is another great example of our ability to negotiate and act on large, complex transactions," said Michael Podboy, chief financial officer and chief investment officer of InvenTrust. "After a thorough assessment of the landscape for student housing, we believe now is the right time to sell our student housing platform."

Citigroup and JP Morgan are acting as financial advisers to InvenTrust. Skadden, Arps, Slate, Meagher & Flom LLP and Hunton & Williams LLP are acting as legal counsel to InvenTrust.