German student housing specialist International Campus is to invest €150 mln in a portfolio of five buildings in the Netherlands as part of a joint venture with Dutch operator Stichting Duwo.

German student housing specialist International Campus is to invest €150 mln in a portfolio of five buildings in the Netherlands as part of a joint venture with Dutch operator Stichting Duwo.

The five buildings, of which four will be developed in Amsterdam, will comprise a total of 2,250 apartments and be incorporated into a Luxembourg-based fund focusing on investments in the Netherlands.

For International Campus, the deal marks its first foray outside Germany. Horst Lieder, the company’s CEO, commented: ‘With this cooperation, International Campus will embark on its first international activity as an investor and developer. This joint venture is an important milestone in the process of focusing the attention of institutional investors on the asset class of student accommodation.’ He added: ‘The Netherlands is a very attractive market. The demand for small living spaces will remain high in the long term in a large number of cities.’

Dutch housing minister Stef Blok was present at the signing of the cooperation agreement in Amsterdam on Monday, on the eve of the opening of the three-day Dutch property fair Provada.

Under the alliance, International Campus will act as investor and co-developer of the student apartments, while Duwo will be in charge of their subsequent operational management. The two companies also plan to cooperate in the area of studios for young professionals and postgraduates.

The Netherlands had more than 660,000 students at 13 state universities and 38 technical universities (as at end-2012).

International Campus’ involvement in the venture will be managed by Wouter van den Eijnden who will assume the role of managing partner of IC Netherlands, a subsidiary of International Campus.

Jan Benschop, CEO of Stichting Duwo, said the partnership with International Campus will enable it to build new living space for students. ‘Duwo’s aim is to create good and affordable housing for students. If we don’t act now, there will be a shortage of 28,000 student apartments in the Netherlands by 2020. That is why we are happy about the cooperation with International Campus.’

According to Benschop, the apartments will cost around €395 a month to rent. This will translate into a yield of no more than 6% for International Campus. ‘True, it’s not a fortune, but we’re interested in stable, long-term income,’ he said.