Ardian and Rockfield have announced the first investment of their pan-European strategy dedicated to Purpose-Built Student Accommodation (PBSA), enabled by an initial commitment from CBRE Investment Management’s Indirect Strategies (CBRE IM) and with dry powder of about €800 mln.
The investment involves a newly constructed standalone building, developed and sold by Italian developer CDS Holding SPA, completed in October 2023 and located in the Novoli district of Florence, just minutes from the Social Sciences campus of the University of Florence.
The next-generation purpose-built student accommodation facility offers 404 beds and features common areas, including a pool with a solarium, gym, lounge area, study rooms, and a cinema room.
The asset has already shown excellent performance, reaching an occupancy rate close to 100%.
This first investment marks the beginning of Ardian and Rockfield's new strategy to create a high-quality student housing portfolio in Europe, particularly in Italy, the Netherlands, Spain, Portugal, Germany, and France. This strategy addresses the increasing demand in key markets characterized by limited supply.
The pan-european strategy has Italy as one of its key markets on which focusing the investment activity, thanks to the strong structural deficit of student housing accommodations among the country.
The property, which is LEED Gold certified, underscores Ardian and Rockfield's commitment to investing in assets that meet high standards of sustainability and environmental responsibility.
'This new Pan-European strategy on PBSA will focus on Italy and Spain, which are among the most interesting markets with a growing demand for student housing but the lowest provision rate in Europe. This platform will further strengthen our presence in these countries, which remain key targets for Ardian Real Estate’s growth in Europe,' said Rodolfo Petrosino, head of real estate Southern Europe at Ardian.
'The acquisition of a fully let asset in a highly sought-after and under-supplied market like Florence presented the perfect opportunity for us to start building our PBSA platform across Italy and Europe,' commented Juan Acosta, partner and CIO at Rockfield. 'The acquisition reflects our strong conviction in the PBSA market in Italy and our confidence in the long-term demand fundamentals for Florence, which continues to be characterized by a restricted development pipeline. This will not be the last investment in Italy and we are planning to be a leading reference when it comes to high quality student accommodation in that market.'
Savills acted as commercial advisor.
