Manulife Investment Management is partnering with Cedar Podium Investment Management to develop a 15-storey purpose-built student housing tower in Kingston, Ont., where site work is already underway prior to the start of building construction.

Cedar Podium and Manulife - both based in Toronto - plan to begin full construction in the next couple of months, and to complete the tower in the fall of 2027.

Located at 283 Queen St., in the city approximately 200 kms east of Toronto, the tower will contain 389 fully furnished bedrooms in 178 apartments. Its downtown location offers direct access to Queen’s University.

A suite of amenities will include a fitness centre, study areas, social lounge and centralized laundry facilities.

"Kingston is a top-tier destination for students, and this development represents a major step forward in supporting its growth," said Bernard Luttmer, CEO of Cedar Podium Investment Management, in the announcement. "Our partnership with Manulife IM reflects a shared commitment to sustainable, long-term solutions in the student housing sector."

Cedar Podium's Canadian PBSA portfolio

Cedar Podium Investment Management is a Canadian PBSA investment firm formed through a partnership between Pamoja Capital, Cedar Pacific Investment Management and Podium Group. The firm combines global funds management expertise with Podium's local market knowledge to deliver student accommodation across Canada.

The firm has over $1.5 billion invested in the sector across 19,000 beds, including more than 39 buildings delivered and seven under development.

The project is being designed and built to achieve the Canada Green Building Council's (CaGBC) Zero Carbon Design certification and targets a two-star Fitwel rating.

This is the first collaboration between Cedar Podium and Manulife IM, laying the groundwork for a potential future larger-scale partnership.

Kingston is home to three major post-secondary institutions - Queen's University, the Royal Military College of Canada and St. Lawrence College.

It has also been the site for other recent student housing developments, including two properties comprising 145 beds completed in 2022 and then acquired by Chicago-based Harrison Street, through its Canadian subsidiary.

"As demand continues to grow, we see purpose-built student housing as a compelling opportunity to invest in resilient, community-enhancing assets, in an alternative asset class with significant tailwinds. We look forward to working alongside Cedar Podium on this forward-thinking strategic venture," said Marc Feliciano, global head of real estate at Manulife Investment Management, in the release.

"Additionally, we believe additional student beds have an indirect positive impact on the broader housing market, as they can be a catalyst for conventional multifamily inventory to be released as students transition into these available assets."

RENX has requested additional information from Manulife about its interest in the student housing sector.

Kingston a popular student destination

In the announcement, Manulife notes Kingston consistently ranks among Canada's best cities for students, known for its affordability, quality of life and academic excellence.

However, a housing shortage threatens to limit its potential. Research by global residential advisory firm Bonard, which specializes in the student housing sector, highlights the lack of available student beds as a ”significant barrier” to institutional growth.

Historically dominated by small-scale, private landlords, the student housing sector is undergoing a transformation in Canada. Rising enrolment and limited supply have created demand for professionally developed, scalable solutions of the type larger developers and owners such as Cedar Podium and Manulife IM can provide.

As part of Manulife Financial Corp., Manulife Wealth & Asset Management provides global investment, financial advice and retirement services to 19 million individuals, institutions and retirement plan members worldwide. 

Manulife is a global investor with $1.3 trillion in assets under management and administration, according to the company’s website.

Podium well known in Kingston

Podium's entities are well known in Kingston as the developers of the GEOCentral complex at 575 Princess St. Developed by Podium Developments in partnership with Secure Capital Partners, Blue Vista Capital Management, Vestcor and OPTrust, the first 10-storey rental apartment building was ready for occupancy last summer.

Podium bills it as Kingston's first residential building to utilize a geo-exchange system for heating and cooling. 

GEOCentral includes 344 apartments, from studios to four-bedrooms, featuring over 250,000 square feet of residential space and 10,500 square feet of commercial space in seven ground-oriented units along Princess Street.

The development also achieved a two-Star Fitwel rating.

GEOcentral includes a public parkette, 218 parking spaces (with 40 electric vehicle charging stations), and amenities including lounges, work/study rooms, rooftop terraces and a two-storey gym featuring a full-size squash court.

Podium's next development, GEOpark, is underway across the street at 485 Albert St.