More than EUR 10 million has been invested in student housing projects in Canada

Family office Taurus Wealth, alongside other private Lithuanian investors, has invested 15 million Canadian dollars (~10 million EUR) in five private student housing projects in Canada.

This investment was realized in collaboration with the Canadian property developer and manager Forum, which has been active in the market for over 25 years.

In the projects located in major Canadian cities – Toronto, Ottawa, and Guelph – Lithuanian investors have invested into the creation of around 2,500 rooms for students. According to market data, during the 2021/2022 academic year, the number of students in Canada reached 2,200,000, with about 20% of them being international students. While the overall number of students is growing more slowly, the number of international students has grown on average by 9.9% each year in recent years, the fastest rate among major developed economies.

Forum was chosen due to its leading position in the Canadian student housing market. The company’s investment focus includes real estate, private equity, and infrastructure assets, with currently managed assets exceeding 1.7 billion Canadian dollars.

“Due to the rapidly growing number of international students and the increasing demand for quality housing, Canada’s student accommodation sector is becoming an exceptionally attractive investment opportunity. Together with our team, we have been actively exploring this market for some time, and the collaboration with Forum provides an opportunity to invest in institutional-quality, construction-ready development projects with a clear exit strategy,” says Taurus Wealth CEO Mindaugas Strėlis.

M. Strėlis emphasizes that the Canadian student housing market faces a significant accommodation shortage, with only 30% of all places being privately funded. This imbalance limits students’ choices and increases the need for state-owned or university-managed housing, thereby intensifying the housing shortage problem for universities and raising rental prices in the private sector. Compared to more developed markets, such as the UK, where private capital accounts for more than half of all student housing assets, there is considerable potential for this sector to expand in Canada.

“Toronto and Ottawa, the target cities for this investment, are among the largest in Canada and important academic centers. These cities face an acute shortage of student housing, with the current supply being particularly limited compared to the growing demand. The number of international students has increased significantly in recent years and is projected to continue rising. Toronto is home to over 265,000 students, while Ottawa also attracts thousands of local and international students who need modern and affordable accommodation. This demographic trend not only creates a strong investment opportunity but also allows us to contribute to improving the infrastructure of these cities, addressing the housing shortage issue,” adds M. Strėlis.

“Taurus Wealth” invests in the student housing strategy through the “1 Asset Management” managed “1AM Student Housing Fund,” which invests in the development of modern student housing infrastructure in the Baltic states and the central and eastern European region. The recently announced 50 million EUR investment from the European Investment Fund demonstrates the strength and relevance of the student housing strategy, adding credibility for investors.

“After closely monitoring the implementation of student housing projects in Europe for many years, together with investor Marius Jakulis Jason, we decided to explore opportunities across the Atlantic. Following market research, we decided to make our first investment in Canada. Although Canada is a relatively unfamiliar market for Lithuanians, I believe we will be investing more in this market in the near future,” says M. Strėlis.