Carlyle agrees student accommodation jv for Benelux

Global private equity firm the Carlyle Group (Carlyle), has announced the expansion of its real estate operations into the Benelux region by signing a joint venture agreement with Benelux Property Group to build a portfolio of student housing in the region.

Carlyle will invest through its third European real estate fund CEREP III, which has EUR 2.2 bn of equity. Benelux Property Group is itself a joint venture between Opal Group, the UK's largest private owner of student accommodation, and the MacGregor family.

The joint venture is targeting 5,000-7,000 student beds across a maximum of 20-25 properties in the Netherlands and Belgium over the next five years. Within the joint venture, Carlyle and Benelux Property Group will provide finance for the acquisition and development of the sites and be responsible for the planning, design and construction phases of the projects. The finished products will then be let, on long leases of 20-25 years, to City Living (in which Carlyle is also a minority stakeholder) who will operate the accommodation business and take responsibility for the welfare of the students.

Carlyle and Benelux Property Group said they want to develop City Living into the leading student accommodation operator in Benelux. Agnès Riban, Associate Director of the Carlyle Group, based in Paris, will be responsible for overseeing Carlyle’s investments in the region.

The joint venture’s portfolio currently comprises two properties, the first of which is a newly refurbished 146-room student housing unit called Home Ruhl in Liege, Belgium, which is 100% let, since opening in September 2008. The supply of good quality student accommodation in Liege does not currently match the very high demand from the 30,000 Belgian and international students in the city.

The second property is a development project called Van Limburg Stirum Huis in The Hague, The Netherlands, which is currently a retirement home located close to the city's Holland Spoor (HS) train station, as well as several universities and colleges. The current occupiers will vacate the property in 2012 when it will be refurbished, increasing the number of rooms from 170 to 250, with the building ready for occupation the start of the September 2013 academic year.