Belgian REIT Xior Student Housing has finalised the acquisition of a redevelopment project near the largest student campus in Amsterdam.
The office complex office, which is to be transformed into 300 student accommodation units, is located in Amstelveen, near Uilenstede, the largest student campus in the Netherlands, and close to the Free University of Amsterdam. After the intended redevelopment of the complex, this transaction will have a total investment value of €30 mln, reflecting an initial yield of 7%.
Benelux-focused Xior said the acquisition strengthened its position in the Netherlands and gives it a presence in the largest student region in the Netherlands with a huge and growing number of students.
This is the first development project to be implemented by Xior as a public BE-REIT, with the expected initial yield estimated to be above the average market yield.
The 300-unit building is expected to open in September 2018. Part of the office complex will continue to be rented for some time to come, thereby generating annual income of around €350,000 as of the acquisition date.
In preparation for the acquisition Xior concluded a new credit agreement with BNP Paribas Fortis totalling €25 mln. Part of this sum was used to finance the acquisition.
Christian Teunissen (pictured), CEO of Xior: 'In addition to the acquisition of student housing that is already up and running, this redevelopment indicates Xior's desire to also carry out development projects and receive an expected rate of return that is more attractive overall.'
