KKR and Round Hill Capital Acquire Second Student Housing Development in the Netherlands

KKR, a leading global investment firm, and Round Hill Capital (“Round Hill”), an established global real estate investment, development and asset management firm, announce that their joint venture (the “Joint Venture”) has acquired the land and is forward-funding the development of a 698-bed purpose-built student accommodation (“PBSA”) scheme in Groningen, the Netherlands.

This is the Joint Venture’s second student housing development in the Netherlands, following their acquisition in July 2018 of a significant development in Utrecht, comprising 577 student beds and 173 residential apartments. KKR and Round Hill continue to make investments in student accommodation through multiple strategies including acquiring existing assets, developing new PBSA, forward-funding and repositioning assets across select university towns and cities across Europe.

The new student housing development scheme is well located within a two-minute walk of Groningen University’s campus and a short bike ride to the city centre. It will offer 467 large en-suite studio flats and 231 short-stay units. There will be a variety of room sizes, dedicated common areas and amenities for all residents to enjoy as well as 404 sqm of commercial space.

Construction is due to complete in early 2020.  The building will be managed by Nido Student, Round Hill’s established operational platform and brand for European student accommodation. Nido Student provides a home, lifestyle and experience which both inspires students and helps to build a real community.

Groningen is the fourth largest university city in the Netherlands with a student population of approximately 54,000. The city has a lack of PBSA with approximately 3,300 beds, which is amongst the lowest provision rates in the Netherlands. Similar to other cities in the Netherlands, excess demand for high quality, well-located student housing in Groningen is being driven by persisting structural supply constraints and this development will help to meet this growing demand.

The project has been acquired from a joint venture between Dutch real estate development firms Borghese Real Estate and Urban Developers. The project will be built by Geveke.

KKR and Round Hill have secured financing for the project from Rabobank.

KKR’s investment was made through its Real Estate Partners Europe fund.

Commenting on the acquisition, Michael Bickford, founder and CEO of Round Hill Capital, said:

“Round Hill has a proven 15-year expertise in successfully investing, developing and managing residential real estate in Europe, and currently operates circa 65,000 residential units and student accommodation beds in eight European countries. We remain committed to continuing to invest in and manage real estate the Netherlands on behalf of multiple investors and we continue to pursue actively our student accommodation and residential strategies.

This is our second student housing development scheme in the Netherlands, which offers positive investment potential with favourable housing demand/supply dynamics and robust economic performance. Round Hill continues to look to make further investments in student and residential property in both the Netherlands and across wider Europe, in line with our existing strategy and growth plans.”

Seb d’Avanzo, Director at KKR, commented:

“We are delighted to have completed this second investment into the student housing sector in the Netherlands, a market with strong fundamentals and poised for future growth. Groningen is a growing university town with a limited supply of purpose-built accommodation, an issue we are looking to address. We continue to search for compelling opportunities in the Netherlands.”

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, growth equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About Round Hill Capital:

Round Hill Capital is a leading global specialist real estate investment, development and asset management firm. Round Hill Capital has a long and proven reputation for successfully identifying and acquiring high quality real estate investments.

Round Hill Capital is a highly focused investor and is experienced in establishing and running first class operating companies, having invested more than €6.5 billion of capital in real estate assets since its inception in 2002.

Round Hill has a successful track record of investing in and operating residential and student accommodation assets across Europe. The Group has acquired, built and managed over 110,000 residential units and student housing beds in recent years and currently manages circa 65,000 residential units and student housing beds in eight European countries. Round Hill’s approach incorporates multiple strategies, including acquiring existing assets, developing new purpose-built assets, forward-purchasing assets and repositioning assets.

Round Hill Capital has an established track record of generating high risk adjusted returns and invests in and asset manages real estate with some of the world’s leading institutions and private investors.

Further information on Round Hill Capital is available at: www.roundhillcapital.com

For further information, please contact:

PR Adviser to Round Hill Capital

Newgate Communications / CFF Communications

James Benjamin / Jan van Ewijk and Klaas Kruijer

Tel: +44 (0) 20 7680 6521 / +31 (0)20 575 40 10

roundhill@newgatecomms.com / Jan.vanEwijk@cffcommunications.nl and klaas.kruijer@cffcommunications.nl

PR Adviser to KKR

Finsbury

Shiv Talwar / Alastair Elwen

Tel: (0) 20 7251 3801

Shiv.talwar@finsbury.com / Alastair.elwen@finsbury.com