New KKR and Round Hill JV buys second student housing development
The newly created joint venture between investment firm KKR and Round Hill Capital has bought a second student housing development in the Netherlands.
KKR and Round Hill said they have acquired the land and will forward-funding the development of a 698-bed purpose-built student accommodation scheme in Groningen.
The project has been acquired from a joint venture between Dutch real estate development firms Borghese Real Estate and Urban Developers for an undisclosed sum.
KKR’s investment was made through its Real Estate Partners Europe fund. KKR and Round Hill said they have secured financing for the project from Rabobank.
Construction is due to complete in early 2020. The project will be built by Geveke.
The building will be managed by Nido Student, Round Hill’s operational platform and brand for European student accommodation.
This is the joint venture’s second student housing development in the Netherlands, following its first acquisition in July, when it bought a 3.1-hectare site to develop a mixed student and residential housing scheme in Utrecht alongside Stadium Capital Partners.
Michael Bickford, founder and CEO of Round Hill Capital, said: “Round Hill has a proven 15-year expertise in successfully investing, developing and managing residential real estate in Europe, and currently operates circa 65,000 residential units and student accommodation beds in eight European countries.
“We remain committed to continuing to invest in and manage real estate the Netherlands on behalf of multiple investors and we continue to pursue actively our student accommodation and residential strategies.”
Round Hill continues to look to make further investments in student and residential property in both the Netherlands and across wider Europe, in line with its existing strategy and growth plans, Bickford said.
Seb d’Avanzo, a director at KKR, said: “We are delighted to have completed this second investment into the student housing sector in the Netherlands, a market with strong fundamentals and poised for future growth.
“Groningen is a growing university town with a limited supply of purpose-built accommodation, an issue we are looking to address. We continue to search for compelling opportunities in the Netherlands.”