US private equity firm KKR and Round Hill Capital announced on Wednesday that they have sold a newly-built residential scheme with 173 apartments in Utrecht, the Netherlands, to Orange Capital Partners. Financial details were not disclosed.
The newly completed residential scheme is targeted at providing affordable homes for young professionals and comprises two apartment buildings with three and seven storeys. The scheme, located between Utrecht Central railway station and the City’s business district, is within a 10-minute bike ride of the city centre and connected directly to Utrecht University via a new tram stop that opened in 2019.
The two buildings, which also include covered parking spaces for cars and bicycles, are part of a larger new-build campus development being developed by the joint venture, which consists of two additional student accommodation buildings as well as commercial space and a courtyard for all residents.
The dilapidated Oudenrijn hospital building, which is part of the scheme, continues to be regenerated and, together with a new 23-storey building that has been built, will provide 682 purpose-built student accommodation (PBSA) beds and dedicated amenities and common areas for the students. Construction of the PBSA beds is expected to be completed in August 2020.
The joint venture acquired the 3.1-hectare site in July 2018 to develop affordable starter homes and student accommodation, and represents KKR and Round Hill Capital’s first student housing transaction in the Netherlands.
KKR’s investment was made through its Real Estate European Partners fund.
Seb d’Avanzo, managing director at KKR, commented: ‘This transaction is the latest stage in our joint venture with Round Hill Capital, as we continue to develop high quality properties in a market with strong economic fundamentals and undersupply of student and residential accommodation. We see the Netherlands as an important real estate market and will continue to look for opportunities to invest in developing quality assets.’
Michael Bickford, founder and CEO of Round Hill Capital, said: ‘Round Hill Capital remains committed to making further investments in residential and student accommodation real estate across select markets in the Netherlands, Europe and the US in line with our existing strategy and growth plans.’
The KKR and Round Hill Capital joint venture was advised on the sale by JLL, with Loyens & Loeff acting as legal and tax advisor. Orange Capital Partners was advised on the transaction by Clifford Chance.
