Round Hill Capital has agreed a joint venture with Canada Pension Plan Investment Board to invest €1bn (£847m) in student housing in Europe.
CPPIB will provide an initial allocation of €475m to the joint venture.
The pair will invest in standing assets and developments in continental Europe. They expect to have around 2,000 beds in Spain and the Netherlands by the end of the year, based on schemes currently under exclusivity and in contract. Assets will be operated by Nido Student, Round Hill Capital’s specialist PBSA brand.
Brian Welsh, head of student at Round Hill Capital, said: “There are unprecedented levels of capital looking to invest in resilient income streams, but the challenge many will face is having access to deal flow and having the market insight and data to extract maximum value. Our long track record in this sector and local presence in core European markets has helped us establish a market-leading position over many years.”
Round Hill Capital has to date made 40 student acquisitions in the UK and Europe, including recent acquisitions in Spain, Germany and the Netherlands.
Andrea Orlandi, managing director and head of real estate, Europe, CPP Investments, said: “Our new partnership with Round Hill Capital will increase our exposure to this asset class across European markets, leveraging their deep sector knowledge and insight to meet the needs of students and drive long-term value for CPP contributors and beneficiaries.”
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