APG invests €100M in the Student Hotel
29 sep 2015 -
APG has made a €100 million equity investment in the hybrid student housing and hotel brand, investing in a diverse European real estate portfolio.
This investment will raise the equity capacity of The Student Hotel group to €250 million. The group will invest more than €600 million in the coming 3-5 years. This spending has already started with the successful acquisition of a 20,000 m2 vacant office building in Florence.
Investing in Europe
Scottish entrepreneur Charlie MacGregor, 39, founded The Student Hotel. Headquartered in Amsterdam in 2006, the company provides full-service, state-of-the-art accommodation with all-inclusive rates to students, trainees and travellers. The Student Hotel currently operates over 2,750 rooms across six cities.
Plans are underway to open further properties across Europe, bringing to life The Student Hotel’s vision for a network of welcoming hubs where students from a variety of different academic institutions can make connections across the academic and social spectrum. The expansion is enabled by an earlier equity commitment of €150M by Perella Weinberg Real Estate Fund II LP in 2014.
The company will focus on expanding in leading European university cities throughout the Netherlands, Germany, Great Britain, Italy, Scandinavia, France and Spain to attract international students, young professionals, and youth travellers, and to help rejuvenate European cities.
The ambition of The Student Hotel is to create a EUR 1 billion, core real estate portfolio, totalling over 10,000 rooms by the year 2020. Two locations are currently under development in Eindhoven and Groningen. The acquisition of a 20,000-m2 vacant office building in Florence will be finalized early October.
APG believes that The Student Hotel is one of the most exciting concepts in student accommodation today and looks forward to supporting the future growth of this successful concept in the European market.
“We think that the European student housing market offers a very compelling investment opportunity.” says Robert Jan Foortse, Head of European Property Investments at APG Asset Management. “The increasing international student mobility and integrated European education market requires flexible and high quality accommodation with trusted brands such as The Student Hotel to be available in leading university cities.”
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