Just days after acquiring a major UK portfolio, Singapore’s sovereign wealth fund GIC and global student housing specialist GSA have announced a second partnership deal, this time in Germany.
The two parties announced that they have acquired a portfolio of close to 1,000 student beds, featuring properties in Frankfurt, Darmstadt, Munster and Dresden as well as a pipeline of 1,500 beds, which will be expanded through investments, developments and in working with local property companies.
Financial details were not disclosed.
The deal, which was sealed in June, marks the cornerstone investment of GIC-GSA's strategy to capitalise on opportunities in the German student accommodation market.
GSA’s partnership with GIC will target the major university cities in Germany such as Berlin, Cologne, Frankfurt, Hamburg and Munich.
As Europe’s largest student market, Germany presents a significant opportunity for GSA’s planned European expansion and the company has set an initial target of opening 10,000 beds. The properties will be operated under the banner of GSA’s Uninest student residences brand.
Nicholas Porter, executive chairman at GSA, said: 'There is a huge number of students studying in Germany, but accommodation is in short supply and purpose built student accommodation almost non existent. Students are customers of higher education and by creating communities within our Uninest residences, we can enhance their overall university experience.'
Madeleine Cosgrave, regional head for Europe at GIC Real Estate, said the German student housing market was attractive as it is at an early stage of growth. ‘We see good opportunities for consolidation as the market is highly fragmented.’
The German deal comes shortly after GSA announced the biggest in a series of transactions over the past two years, acquiring The Student Housing Company and its UK portfolio of more than 7,000 beds in partnership with GIC.
Advisers on the German transaction were Nabarro, Freshfields, Osborne Clark and PwC.
