US private equity firm Warburg Pincus acquired Housing Development Finance Corporation’s (HDFC) 24.48% stake in Good Host Spaces for Rs 216.18 crore, the on-campus student housing platform said.
Warburg also bought fresh shares. Good Host, which operates and provides amenities such as cafeteria, gym, recreational facilities, said shareholder Goldman Sachs and Warburg will invest additional capital.
The stake sale was first announced in January. Goldman Sachs’ investment banking division acted as an adviser to Good Host on the deal.
HDFC bought the stake in Good Host for Rs 69.5 crore in a cash deal in 2018.
Good Host said it was in discussions with several other institutes in India to expand its portfolio to 50,000 beds in the near term.
“We look forward to working closely with them (Warburg) and leveraging their global experience in creating market-leading real estate platforms,” Nimesh Grover, CEO of Good Host, said.
Started in 2017, Good Host was set up by Nimesh Grover and Stanley D’britto. It provides services across five cities in India.
The student housing sector has seen a number of deals over the last few years.
Last year, managed accommodation company Stanza Living bought Delhi-based YourShell, a student accommodation brand focused on customers in the National Capital Region.
Also last year, technology-enabled student housing chain Oxfordcaps entered into a joint venture with education infrastructure specialist Cerestra Advisors to focus on student housing.