TPG Real Estate Partners (TREP) and Round Hill Capital have acquired a portfolio of 13 student accommodation assets in Germany, as part of a joint venture.
The vendor in the transaction was Deutsche Real Estate Funds, a student housing specialist. Financial details were not disclosed.
The portfolio comprises around 2,100 units in nine cities, including Berlin, Bremen and Stuttgart, within easy commuting distance of major universities and amenities. TREP and Round Hill Capital intend to carry out refurbishments and operational improvements, they said.
The core strategy of the joint venture is to acquire and reposition existing assets, as well as develop new purpose-built properties in university cities and towns in Germany with strong and increasing demand for student housing, but an undersupply.
The deal marks TREP and Round Hill Capital’s first joint transaction in Germany and second joint investment in the student accommodation segment.
Michael Abel, partner at TPG Real Estate, said: ‘The student population in Germany is one of the largest and fastest growing in Europe. Despite this, the country’s student housing sector is still underdeveloped, with few institutional operators of scale.
‘We are pleased to partner with Round Hill Capital and all existing stakeholders on this complex transaction to bring more high-quality accommodation options to students across the country. The acquisition highlights TREP’s ability to source, carveout, and invest behind value-add assets in key European locations that are benefiting from strong economic fundamentals. We look forward to building and enhancing the portfolio.’
Michael Bickford, founder and CEO of Round Hill Capital, added: ‘Round Hill Capital has long-established expertise and capabilities as an investor in student accommodation and wider residential housing, with a focus on responsible, hands-on asset management. We have a 17-year track record of successfully investing in and reliably operating residential housing in Germany.
‘We are committed to bringing our expertise in the student housing sector to the German market and plan to make further investments in line with this new strategy and growth plans to build a substantial and well-managed platform in Germany.'
