Patrizia has made is first foray into the Italian student accommodation market with a circa €70 mln investment into a contemporary purpose built student accommodation (PBSA) development in a prime student location in Turin.
The deal forms part of the firm's ongoing push into European student accommodation, following its acquisition of a student portfolio in Barcelona last month.
Pierluigi Scialanga, head of transactions in Italy at Patrizia, said: 'This deal increases our AUM in Italy to €1.1 bn and is a very exciting acquisition for Patrizia as we enter a brand new student market that is characterised by an extreme undersupply of PBSA serving what is the EU’s third largest student population.
'Turin itself has a very prestigious and sought-after higher education sector, yet it currently offers only one bed for every 16 students, making this an exceptionally compelling investment opportunity for our global client base.'
The site is strategically located in Via Frejus to the west of the city centre, which is within 1 km of Politecnico di Torino, home to some 33,000 students, and 3.5 km from the University of Turin, which has 81,000 students.
The modern PBSA development comprises 582 ensuite studio bedrooms along with a host of amenities including a gym, study spaces, a sky lounge, laundry facilities, an expansive green outdoor space and 142 basement parking spaces.
The scheme spans 13,000 m2 of residential space over five floors and is located within a 10-minute walk of a metro station and tram stop.
The project has been designed to achieve LEED Gold certification, incorporating measures to improve energy efficiency, lower carbon emissions and enhance environmental quality. Scheduled to open in September 2023, the development is being delivered by Stonehill Holdings, a specialist developer of pan-European student accommodation.
Patrizia has been one of the most active investors in the European PBSA market in the past six months, having invested €550 mln totalling 2,800 beds over four countries including Ireland, Spain, Italy and Denmark, with further deals in the pipeline.
