Canada Pension Plan Investment Board (CPP Investments) and Round Hill Capital have formed a €1bn European student accommodation investment partnership.
CPP Investments, the investment arm of the Canada Pension Plan, is allocating an initial €475m of equity to the venture which will invest in standing assets and developments across PBSA markets in Continental Europe.
By year-end the joint venture is expected to have approximately 2,000 beds secured in Spain and the Netherlands based on contracted assets and those under exclusivity, the companies said in a joint statement.
The assets will be operated primarily by Round Hill Capital’s purpose-built student accommodation (PBSA) brand Nido Student.
Andrea Orlandi, managing director, head of real estate Europe, CPP Investments, said the partnership with Round Hill Capital will “increase our exposure to this asset class across European markets, leveraging their deep sector knowledge and insight to meet the needs of students and drive long-term value for CPP contributors and beneficiaries”.
Michael Bickford, founder and CEO of Round Hill Capital, said this joint venture, one of the biggest European PBSA partnerships to date.
“With 40 PBSA acquisitions to date, worth a collective €1.8bn, we are firmly established as a market leader.”
Brian Welsh, head of student at Round Hill Capital, said: “There are unprecedented levels of capital looking to invest in resilient income streams, but the challenge many will face is having access to deal flow and having the market insight and data to extract maximum value.
”Our long track record in this sector and local presence in core European markets has helped us establish a market-leading position over many years.”
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