Goldman Sachs, a prominent global alternative investment firm, has shortlisted Brookfield Asset Management, Alta Capital, and Singapore’s Keppel Corp as potential buyers for its stake in Good Host Spaces, India's largest student housing platform, according to sources familiar with the matter.

Goldman Sachs currently holds approximately 70 per cent ownership in the company, which operates third-party purpose-built, on-campus student housing assets across major Indian universities, including Manipal University, O P Jindal Global University, and Shoolini University.

The negotiations for the stake sale are in advanced stages, and the deal is expected to value the company at approximately $350 million, as per one of the sources.

This proposed transaction reflects the sustained interest of global investors in the Indian real estate market. While Brookfield is a Canadian institutional investor and Keppel Corp is a Singapore-based investment entity, Alta Capital is a fund based in Singapore and managed by Siddhartha Gupta, Blackstone India's former Managing Director.

Good Host Spaces was founded in 2017 and currently operates a portfolio of around 25,000 beds across five cities. The company is in discussions with various educational institutions to add a similar number of beds to its portfolio in the near future.

Initially, the platform received backing from Goldman Sachs and HDFC. In 2021, Warburg Pincus’ affiliate Baskin Lake Investment acquired HDFC's 24.48 per cent stake along with a primary investment, and Warburg Pincus may also consider selling its stake in this proposed transaction.

Good Host Spaces follows a business strategy that involves partnering with universities to offer specialised, custom-built accommodation services to students. They upgrade and manage on-campus student housing with a focus on long-term returns, providing colleges and educational institutions an opportunity to monetise their non-core student housing and concentrate on their core activities.

All parties involved, including Goldman Sachs, Brookfield, Alta Capital, Keppel Corp, and Good Host Spaces, declined to comment on the matter, and Warburg Pincus has not responded to email queries.

After a temporary slowdown during the Covid-19 pandemic, the demand for student accommodations has been steadily recovering, resulting in rental growth of over 10-12 per cent over the last two years, according to property consultants.

With increasing student enrolments in Indian universities for higher education, the student housing segment presents significant growth opportunities for investors and developers. The rise in investment appetite among global investors for this asset class reflects positive growth prospects.

The higher education landscape in India has witnessed significant changes in recent years, with the establishment of several high-quality private universities. The implementation of the new National Education Policy is expected to enhance the global competitiveness of Indian universities, leading to a greater demand for high-quality, professionally-managed student housing facilities. This natural evolution is likely to drive substantial growth in this asset class, mirroring the trends seen in other developed countries.