Munich-based student housing specialist International Campus has launched a student housing fund with a target volume of up to €1 bn, securing €600 mln of equity in its first close.
The main investors in The Fizz Student Housing Fund S.C.S. are Allianz and another European investor, whose name was not revealed.
The initial portfolio consists of four fully leased existing properties with more than 1,200 apartments in Berlin, Darmstadt, Frankfurt/Main and Hanover, purchased for an undisclosed sum.
'We are delighted that we have now been able to incorporate the successful developments of our The Fizz residential buildings for students and young professionals into a long-term property investment vehicle, and to have landed an internationally renowned top name as Allianz,' commented Rolf Engel, chairman of the supervisory board of International Campus.
'Demand for the new fund and the decision of Allianz clearly show that well-managed, high-quality residential buildings for young target groups have long since become an attractive asset class in their own right for large institutional investors,' Engel added.
The fund is also buying four ongoing project developments in forward structures with more than 1,600 apartments in Aachen, Frankfurt/Main, Hamburg and Cologne, and said it was planning further acquisitions.
With an equity ratio of 70%, the fund has an initial term of 10 years, though its investment committee can resolve to extend this. International Campus is a co-investor and will be responsible for the asset and property management in the future.
'We see student housing as an attractive growth market with an appealing risk/opportunity profile and considerable development potential,' commented Olivier Téran, CIO of Allianz Real Estate. 'In recent years International Campus has impressively demonstrated that it has the necessary skills for the acquisition, development and operation of projects in the student housing segment. International Campus, with its strong platform and branding, is an ideal partner for us for student housing as part of our investment strategy.'
'We have secured strong institutional partners for our expansion in Germany and the Netherlands, not to mention our forthcoming market launch in Austria, in Allianz and the other European investor,' noted Horst Lieder, CEO of International Campus. 'With a target volume of more than 15,000 apartments under management by the end of 2020, we are systematically continuing our dynamic growth trajectory as a pan-European-oriented company.'
