APG invests in residential property company Student Hotel

Dutch pension fund manager APG is to invest €100m in a European student residential property company.

The investment takes the capacity of the Student Hotel group, which launched in 2006, to €250m.

The group is aiming to invest more than €600m over the next five years.

APG said the Student Hotel was one of the most exciting concepts in student accommodation.

Robert Jan Foortse, head of European property investments at APG Asset Management, said: “The European student housing market offers a very compelling investment opportunity.

“The increasing international student mobility and integrated European education market requires flexible and high-quality accommodation with trusted brands such as the Student Hotel to be available in leading university cities.”

Charlie MacGregor, who founded the group, this year told IP Real Estate that, while study has evolved and changed, the standard of accommodation on offer is playing catch-up.

The company, he said, was not scared of empty rooms.

“If a student comes to us saying they’re moving out, it’s not an issue,” he said. “More than anything, it’s an opportunity.”

The Student Hotel uses the summer months to turn “one of the weakest periods into one of the strongest”.

“We’re not afraid of vacancy, as it turns into a massive advantage,” he said.

The group has recently bought a 20,000sqm vacant office building in Florence, while the first phase of the group’s 574-room Amsterdam City asset opened in August.

European expansion was initiated after a previous equity commitment of €150m by Perella Weinberg’s Real Estate Fund II last year.

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