Brookfield’s sale of UK portfolio Student Roost and Xior’s purchase of 11 continental student digs signal sustained confidence in residential.
Despite a gloomy few weeks for economic news - including record eurozone inflation - investors are still targeting residential real estate, perhaps because rents can move more easily in line with inflation than some other property types.
GIC and Greystar paid £3.3 bn for Student Roost’s 23,000 beds and a further 3,000 bed pipeline, but according to the UK’s Financial Times, bids had been expected to hit £3.5 bn, with other bidders put off at that level by rising borrowing costs.
Brussels-listed Xior’s €939 mln acquisition of eight operational buildings and three developments from Basecamp Group at a 5.21% initial yield takes its pan-European student portfolio over €2 bn. The new assets are in Germany (Potsdam, Leipzig and Aachen), Poland, Denmark and Sweden, complementing existing properties in Belgium, Portugal, Spain and the Netherlands.
Six fund managers are raising new funds with Hines pulling in €900 mln for the first close of European Value Fund 3 and Nuveen holding a first close for its fourth European debt fund.
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