Global investment firm KKR has sold two major student housing developments in the Netherlands for €190 mln.
Xior Student Housing acquired the Zernike Tower, 700 units in Groningen, and Greystar Real Estate Partners acquired 680 student accommodation units in Utrecht. Earlier this year in May, in a separate transaction, KKR sold the residential buildings in Utrecht, comprising 173 units, to GIC and Orange Capital Partners.
KKR acquired the sites in 2018. Under KKR's ownership, the sites have been delivered to meet the rapidly growing demand for student accommodation in two of the largest student cities in the Netherlands.
The 23-story Zernike Tower in Groningen recently opened in August this year and achieved full occupancy shortly thereafter, offering 698 fully furnished independent studios. It is strategically located, close to the city centre and the Zernike student campus of Groningen, one of the top 4 student cities in the Netherlands, with a high percentage of international students. The student accommodation complex in Utrecht comprises a total of 682 units split between a newly constructed 24-storey building (463 units) and a refurbished former hospital wing of nine storeys (219 units) that were completed in October 2020, located in close proximity to Utrecht University and the city centre.
Seb D'Avanzo, managing director in European Real Estate at KKR, said: ‘With these investments, we have helped address the growing demand for quality and well-located affordable accommodation in the Netherlands that also contribute to the local community and economy. We see the Netherlands as an important real estate market and will continue to look for opportunities to invest in delivering quality assets to benefit from the continued pipeline of demand. We wish Xior Housing NV and Greystar every success with the acquisitions in Groningen and Utrecht.’
