TPG Real Estate Partners and Round Hill Capital acquire a portfolio of 13 student accommodation assets in Germany

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, announced today that they have acquired, through a newly-formed strategic venture (“The Venture”), a portfolio of 13 student accommodation assets in Germany. The assets, which were formerly owned by student housing platform Deutsche Real Estate Funds, were acquired through a mutual agreement with all stakeholders. Financial terms of the transaction were not disclosed.

The assets acquired by the Venture consist of c.2,100 units across nine cities in Germany (Berlin (3), Bochum, Bremen, Essen, Halle, Kiel (2), Ludwigsburg, Siegen and Stuttgart (3)). The assets are generally situated within easy commuting distance to some of Germany’s major universities and key amenities across each city. The Venture will leverage TREP and Round Hill Capital’s experience managing and investing in European real estate portfolios to enhance the properties through refurbishments and operational improvements. TREP and Round Hill Capital will continue to target opportunities in line with the Venture’s 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 acquisition marks TREP and Round Hill Capital’s first joint transaction in Germany and second joint investment in the student accommodation sector. In November 2018, TREP and Round Hill Capital acquired, through a separate strategic venture, 39,000 sqm of buildable area in central Lisbon, Portugal, with plans to develop high-quality student accommodation and residential apartments on the site.

Michael Abel, Partner at TPG Real Estate, commented:

“The student population in Germany is one of the largest and fastest growing in Europe. Despite this, the country’s student housing sector is still underdeveloped, with few institutional operators of scale. We are pleased to partner with Round Hill Capital and all existing stakeholders on this complex transaction to bring more high-quality accommodation options to students across the country. The acquisition highlights TREP’s ability to source, carveout, and invest behind value-add assets in key European locations that are benefiting from strong economic fundamentals. We look forward to building and enhancing the portfolio.”

Michael Bickford, Founder and CEO of Round Hill Capital, said:

“Round Hill Capital has long-established expertise and capabilities as an investor in student accommodation, and wider residential housing, with a focus on responsible, hands-on asset management. We have a 17-year track record of successfully investing in and reliably operating residential housing in Germany.

The acquisition of this portfolio of student accommodation assets across Germany is TREP and Round Hill Capital’s first joint transaction in the country. We are committed to bringing our expertise in the student housing sector to the German market and plan to make further investments in line with this new strategy and growth plans to build a substantial and well-managed platform in Germany. Round Hill Capital continues to expand its business across wider Europe and international markets in line with our existing strategies in the accommodation and logistics sectors.”

About TPG Real Estate

TPG Real Estate (“TPGRE”) is the real estate platform of TPG, a leading global alternative asset firm with more than $104 billion of assets under management and 17 offices around the world. TPGRE includes TPG Real Estate Partners (“TREP”), its equity investment platform, and TPG Real Estate Finance Trust (NYSE: “TRTX”), its debt origination and acquisition platform. TREP focuses primarily on investments in real estate-rich companies, property portfolios, and select single assets located in North America and Europe. TRTX originates and acquires senior real estate loans across a broad spectrum of asset classes in North America. TPGRE currently manages approximately $10.8 billion in assets across both platforms. For more information please visit www.tpg.com.

About Round Hill Capital

Round Hill Capital is a leading global specialist real estate investment, development and asset management firm. Since inception in 2002, Round Hill Capital has acquired and repositioned for long-term institutional ownership over 110,000 residential units and student housing beds. Round Hill is a responsible landlord of assets offering housing to a range of occupants, from students through to senior citizens.

Round Hill Capital and its affiliates currently own and manage together with its local management partner, Residea Immobilien Management, over 6,000 units in Germany for several institutional and private clients, supported by Round Hill Capital’s established team of real estate professionals across its network of offices in Berlin, Frankfurt and Munich.

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