Student housing specialist International Campus (IC) has sold a controlling stake in the business to a private fund managed by Brookfield Asset Management to help finance its international expansion.
IC, with a portfolio of 11,800 apartments across four countries, is seeking to expand its portfolio to 20,000 units in the medium term.
'We will use the fresh capital to expand and scale our business model in Western and Central Europe, with an emphasis on Germany,' commented CEO and company founder Horst Lieder.
The terms of the transaction remain confidential.
Rolf Engel will continue to chair the supervisory board and the fund management. Lieder will remain as CEO to guide the expansion of the company.
Commenting on the move, Lieder added, 'The strategy is growing our existing business and to build up an on-balance sheet real estate portfolio of significant scale. At the same time, we will continue to manage our existing funds.'
Foreign expansion
IC recently entered Prague with local developer Karlin and late last year launched its first scheme in the Austrian capital. It has long been active in Germany and the Netherlands.
Zach Vaughan, managing partner and European real estate head at Brookfield, commented, 'There is unmet demand for purpose-built student and young professional accommodation in Germany and continental Europe. Although this sector is relatively nascent, International Campus is a market leader and has the operating, sourcing and development capabilities necessary to build a first-class institutional portfolio. We are excited about this opportunity and look forward to working with International Campus on their ambitious growth plans.'
Brookfield's acquisition in Europe follows the company's expansion in the UK where it currently operates through its Student Roost platform. In early 2018, the unit bought the Enigma portfolio of 5,400 beds in 12 UK university towns and cities from CBRE GI and Curlew Student Trust for €586 mln.
