Belgian student housing specialist Xior is joining forces with developer Life through the launch of a new fund which will take over six development projects and completed assets in Belgium and the Netherlands worth around €155 mln.
Xior will own a 90% stake in the XL Fund, with Life holding a minority stake of 10%. The deal – reflecting an average gross yield of 5.83% – will strengthen Xior’s presence in its domestic market while providing a springboard for future growth, the company said in a statement.
The portfolio encompasses around 1,600 units across six locations and offers an attractive mix of operational, near-operational and yet-to-be-developed projects, generating rental income immediately. It consists of Katzensprung in Vaals, Prince and Felix in Antwerp, ARC in Liège, Ariënsplein in Enschede and a project in Flanders.
Following this transaction, the value of Xior's portfolio will rise to €1.8 bn, representing some 15,000 lettable student units spread over 30 different cities.
‘The creation of the XL Fund is the culmination of our joint efforts in recent years and offers us great prospects for the future to further expand our portfolio and continue to strengthen our position in Belgium and the Netherlands through this fund,’ said Christian Teunissen, CEO of Xior. ‘These six new student residences perfectly complement our current portfolio and can be effortlessly integrated into our current management platform, with immediate realisation of economies of scale and further geographical diversification in our historic domestic market.’
