GMH will continue to manage the properties and receive management fees. "Entering into this joint venture allows us to monetize the value of several assets and reduce outstanding indebtedness under our line of credit," says John DeRiggi, CIO and president of the division, in a statement. "Additionally, we expect to explore opportunities to acquire complementary student housing assets through similar joint venture structures that would enable us to enhance our franchise value by leveraging our property management and leasing talents."

The formation of JVs was a strategy outlined by GMH in late December, following management's decision to re-structure rather than sell the company. The locally based REIT, which specializes in military and student housing, has been beset by problems for a year following allegations of "tone at the top" problems and "material weaknesses" in controls over financial reporting. The allegations launched a special committee and independent audit, both of which have been completed.