TPG Real Estate and Round Hill Capital grow student accommodation portfolio in Germany
Round Hill Capital and TPG Real Estate Partners (“TREP”) the dedicated real estate equity investment platform of global alternative asset firm TPG have today announced the acquisition of two residential complexes for student living in Germany. The assets, situated in the cities of Munich and Dresden, were acquired for total consideration of c. €68 million through TREP and Round Hill Capital’s strategic joint venture (“the Venture) formed in July 2019.08 March 2021
TPG Real Estate and Round Hill Capital Grow Student Accommodation Portfolio in Germany
London, 8 March 2021 – TPG Real Estate Partners (“TREP”) the dedicated real estate equity investment platform of global alternative asset firm TPG, and Round Hill Capital, a leading real estate investment, development and asset management firm, have today announced the acquisition of two residential complexes for student living in Germany. The assets, situated in the cities of Munich and Dresden, were acquired for total consideration of c. €68 million through TREP and Round Hill Capital’s strategic joint venture (“the Venture) formed in July 2019.
The two assets acquired by the Venture will further strengthen TREP and Round Hill Capital’s growing portfolio of high-quality student accommodation assets in Germany. The student housing platform now totals over 2,500 units across the country’s major university cities including Berlin, Stuttgart, Munich and Dresden.
Both institutional assets are fully operational and require limited development following acquisition. The first property complex, Alp Studios, comprises 287 studio apartments across 6,121 sqm. Located in the district of Obersendling in the South of Munich, the development benefits from excellent accessibility to the city centre and main educational institutions. The second asset is located in Dresden, in the north of the city. Totalling 4,335 sqm, the asset comprises 199 studio apartments, in the vibrant student district of “Innere Neustadt”.
Both assets will be operated by award-winning operator Nido Student, which currently operates 28 student residences across Europe, including 12 in Germany.
TREP and Round Hill Capital will continue to target opportunities to build the platform in line with their strategy to acquire and reposition existing assets, as well as develop new purpose-built properties across select university cities and towns in Germany where there is a strong and increasing demand for high-quality, well-managed student housing but persisting supply constraints. The existing portfolio, which was acquired in 2019, is nearing full operation, with the last remaining development project set for completion in March 2021.
Michael Abel, Partner at TREP, commented:
“The acquisitions these high-quality assets in Munich and Dresden will make excellent additions to the Venture’s student housing platform. We look forward to further enhancing the portfolio through new acquisition and development opportunities as we seek to build an institutionalised platform of
best-in-class assets at scale across Germany, where demand for quality student living remains high.”
Michael Bickford, Founder and CEO at Round Hill Capital, said:
“We are delighted to announce our latest German purpose-built student accommodation acquisitions with TPG Real Estate, further establishing Round Hill Capital’s reputation as one of Europe’s leading student accommodation investors. Whilst Covid-19 has presented short-term challenges, the deal highlights the resilience of the PBSA sector, and the ongoing appetite for high-quality student accommodation assets across Europe’s major cities. By leveraging our on-the-ground German team, we plan to unlock further value for these assets and the platform as a whole.”