Dutch pension fund manager APG is investing a further €175m in The Student Hotel (TSH), a European student residential property company.
Amsterdam-based TSH said it has secured €300m of funding from its current shareholders Aermont and APG to help support the firm’s expansion plan.
APG is investing via LaSalle Residential Finance (LRF), an APG-backed LaSalle Investment Management residential finance fund. In 2013, APG teamed up with LaSalle provide senior debt financing to residential projects and student housing developments.
TSH said the funding will help the launch the construction of seven new flagship hotels in key EU gateway cities and adding nearly 3,000 rooms to the existing portfolio.
TSH expects to open a further three hotels in 2022 allowing it to expand its presence in Europe and resulting in opening more than 1,000 rooms in Madrid, Barcelona and Toulouse.
TSH was launched in 2006 with backing from US private equity firm The Carlyle Group. It also secured financial backing from APG and Perella Weinberg Real Estate.
Charlie MacGregor, CEO of TSH, said: “Despite all the restrictions on travel, the lockdowns and education disruptions for students, we achieved strong occupancy over the past 18 months even in new markets where we had just opened. This has allowed us to come through the Covid crisis stronger.”
Vincent Rouget, partner at Aermont, said: “The unprecedented test brought by the pandemic proved the resilience and the lower volatile nature of The Student Hotel hybrid business model thanks to its diversified sources of revenues.
“With its unrivalled owned portfolio of prime properties across Europe and its unique community-based hospitality experience across generations, TSH emerges from the pandemic well capitalised and superbly positioned to consolidate its leadership position towards the millennial and Gen-Z audience“
To read the digital edition of the latest IPE Real Assets magazine click here.