Nuveen Real Estate and developer Value One have partnered on a €600m (£517m) joint venture, focusing on purpose-built student accommodation in Europe.
The jv will be seeded with three assets – one standing investment in Vienna, and two developments in Lisbon and Porto to be delivered over the next two years.
The venture is predominantly backed by Nuveen, with additional investment from Value One.
Nuveen will act as investment adviser to the venture. Value One and Milestone, its subsidiary, will provide origination, development management and operational guidance.
The venture said its objective was to develop high-quality purpose-built product, but that it would also consider repositioning opportunities and standing investments “on a case-by-case basis”.
Jasper Gilbey, director of Nuveen, said: “This new platform is fully consistent with Nuveen’s strategy of increasing our exposure to the housing sector via a strategic partnership with a best-in-class operator-developer.”
Reggie Noel, senior portfolio manager at Nuveen, said: “Student accommodation is one of the most exciting investment opportunities in Europe right now.
“University places are in demand from an increasingly mobile student pool, which we expect to continue to grow over the long term. The venture will target cities that show supply shortfalls in student accommodation, particularly in terms of modern, purpose-built stock.”
Andreas Köttl, chief executive of Value One, said: “Our new partnership with Nuveen is a great opportunity to join forces and target a fast-growing market.”
Value One was advised by Savills, Addleshaw Goddard, CHSH, MLGTS and PwC; Nuveen instructed Cushman & Wakefield, CBRE and Linklaters.
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