Belgian real estate investment trust Xior Student Housing has acquired a new development project with 180 student units located in the northern Dutch city of Groningen.
The transaction takes the form of a share deal with an investment value of €20 mln and is expected to have an initial yield of 6.5%.
Located near the centre of Groningen and the University Medical Centre of Groningen (UMCG), the building will provide 180 independent student units with an average surface area of 31.8 m². After completion of the project planned for April 2018, Xior will be provided a return guarantee by the seller valued at €650,000, whereby this project will generate income from the moment of acquisition.
The acquisition comes hard on the heels of Xior's recent deals in the Dutch cities of Delft, The Hague and Rotterdam.
'With this project, we add another quality student building to the portfolio and expand the presence of Xior in the northern part of the Netherlands which enables us to offer housing to students in nearly all of the largest student towns in the Netherlands,' commented Christian Teunissen, CEO of Xior.
Launched as a Belgian REIT at the end of 2015, Xior currently owns €357 mln of student housing assets.
