Global investment manager Nuveen Real Estate and Vienna-based developer Value One have announced a €600 mln joint venture that will invest in purpose-built student accommodation (PBSA) throughout Europe.
The vehicle will be seeded with three assets – one standing investment in Vienna and two developments in Lisbon and Porto to be delivered over the next two years.
The venture is backed primarily by Nuveen Real Estate with additional co-investment provided by Value One. Nuveen Real Estate will act as investment adviser to the venture while Value One and Milestone, a Value One subsidiary, will provide origination, development management and operational expertise.
Nuveen Real Estate said it will use its city-focused research strategy to identify prime locations within close proximity of key universities, transport nodes and local amenities. Whilst the objective will be to develop purpose-built product, the venture will also consider repositioning opportunities and standing investments on a case-by-case basis.
Jasper Gilbey, director of Nuveen, commented: ‘This new platform is fully consistent with Nuveen’s strategy of increasing our exposure to the housing sector via a strategic partnership with a best-in-class operator-developer. We look forward to growing this exciting platform over the coming years.’
Andreas Köttl, CEO of Value One, added: ‘Our new partnership with Nuveen is a great opportunity to join forces and target a fast-growing market. We are looking forward to contributing our vast experience in developing and operating PBSA (purpose – built student accommodations). Milestone is a well trusted brand, and we are keen to establish together a benchmark in student-living for Europe.’
Nuveen Real Estate was advised by Linklaters (legal & tax affairs), Cushman & Wakefield (commercial), and CBRE (technical issues). Value One was represented by Savills, Addleshaw Goddard (legal), CHSH (Legal Austria), MLGTS (Legal Portugal), and PwC.
Nuveen Real Estate is one of the largest investment managers in the world with $125 bn of assets under management. Vienna-based Value One has developed projects with an investment volume of over €2 bn across Europe over the last 20 years.
