Hines to invest €500m in Italian student digs market

The company has joined forces with Blue Noble, an independent real estate investment management company, to acquire a site near Bocconi University, Milan, for €35 mln.

The two companies will spend a further €50 mln to develop a 600-bed accommodation facility on the site.

The investment marks Hines’ entry into the Italian student housing market, with the investor aiming to deliver a total of 5,000 student beds across the main Italian university cities including Milan, Rome, Florence and Venice.

In total, Hines plans to invest €500 mln in the sector over the next two years, according to country head Mario Abbadessa. 'We see a wide gap between supply and demand in Italy, in terms of available accommodation and particularly in terms of its quality, sustainability and flexibility. Our goal is to provide innovative solutions to the different needs of students, foreigners and young professionals,' he said.

The asset will be managed directly by Hines through Aparto, the company’s dedicated student accommodation operating platform, which currently operates 1,400 student beds in the UK and Ireland, with an additional pipeline of 3,600 beds across Europe.

Located a five-minute walk from Bocconi, at the corner of Via Giovenale and Via Col Moschin, the scheme will offer micro-living units.

Completion of the acquisition is due to occur in May 2018, with the development of the new scheme scheduled to begin in 2018 and anticipated to be completed by the end of 2020.

Lars Huber, CEO of Hines Europe, said 'We are very committed to the student housing sector, and look forward to expanding our growing portfolio in many markets across Europe. Italy represents a key market and we expect this first acquisition through this joint venture with Blue Noble to mark the first of a series of investments in core cities across the country with growing and dynamic student populations.'