KKR and Round Hill Capital Partner to Acquire a Significant Mixed Student and Residential Housing Development in Utrecht

KKR, a leading global investment firm, and Round Hill Capital (“Round Hill”), a leading real estate investment, development and asset management firm, announce that they have acquired, through a new joint venture, a 3.1 ha site to develop a significant housing scheme in the Netherlands. The investors have invested in the project alongside Stadium Capital Partners, and the development will provide much needed accommodation for students and young professionals.

This is KKR and Round Hill’s first student housing transaction in the Netherlands, a country which exhibits positive investment fundamentals, favourable housing demand/supply dynamics and robust economic performance. Round Hill is currently funding a pipeline of over 7,000 student accommodation beds across the UK, Ireland, the Netherlands, Portugal and Spain.

The dilapidated Oudenrijn hospital building, which is part of the site, will be transformed and, together with a new 23 storey building that will be built, will provide 577 purpose-built student accommodation (“PBSA”) beds. In addition, 173 residential apartments will be built on the site targeted at young professionals. The designs also provide for dedicated amenities and common areas for the students as well as also hosting commercial space for all residents.

On completion of construction, the PBSA will be managed by The Nido Collection, Round Hill’s well-established operational platform and brand for European student accommodation.

The site, located between Utrecht Central railway station and the City’s business district is within a 10 minute bike ride of the city centre and it will be connected directly to the Utrecht University via a new tram stop close to the building that will open in 2019. Utrecht has strong and increasing demand for good quality, well-located residential and student housing combined with persisting structural supply constraints, and this scheme will help to meet this growing need for housing. Utrecht is the fourth most populous city in the Netherlands and is the second largest student city in the Netherlands, with a population of approximately 60,000 students and growing.

The project has been acquired from Ontwikkelings Combinatie Oudenrijn, a development joint venture between Van Beek & Partners Vastgoedbeleggingen, Veluwezoom Verkerk Vastgoedontwikkeling and DSO Deelnemingen and with delegated developer ICOON Vastgoed. The project will be built by Wessels Rijssen and Veluwezoom Verkerk Bouw, both Volker Wessels companies, one of the Netherland’s largest contractors.

KKR and Round Hill have secured financing for the project with ING Bank NV.

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

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

“Round Hill has more than a 12 year track record of successful investment and development as well as asset management expertise across residential real estate in Europe, and this transaction, alongside our other recent Dutch investments, significantly enhances our platform in the Netherlands, which remains a key focus of our strategy. This high quality student and residential housing development scheme, our first student housing scheme in the Netherlands, will help to meet the continuing growing demand for housing within Utrecht.

Round Hill remains committed to making further (re)development investments in the Netherlands and across wider Europe, whilst also continuing to look to make more investments in residential property in line with our existing strategy and growth plans.”

Seb d’Avanzo, Director at KKR, commented:

“This is a high-quality development in an excellent location, and we see significant upside potential in the Netherlands, a market which exhibits strong growth drivers for student housing. KKR’s European real estate platform has a successful track record in executing partnership deals, and this acquisition represents an exciting first step in KKR’s partnership with Round Hill Capital. We look forward to working with them to expand our footprint in student accommodation and residential housing in select European markets.”

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 Capital has successfully acquired and managed more than 100,000 residential units across Europe and currently is one of the largest private landlords in multiple countries.

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 over eight European countries. Round Hill’s approach incorporates multiple strategies, such as 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.