- What TPG and Round Hill buy in Munich and Dresden
- Why The JV is targeting purpose-built properties across select university cities and towns in Germany where there is a strong and increasing demand for student housing
- What next Both assets will be operated by operator Nido Student
TPG Real Estate Partners and Round Hill Capital have bought two residential complexes for student living in Germany.
The assets Munich and Dresden were acquired for €68m through TREP and Round Hill Capital’s strategic joint venture formed in July 2019.
The two assets will further strengthen TREP and Round Hill Capital’s growing portfolio of student accommodation assets in Germany, which 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 sq m. Located in the district of Obersendling in the South of Munich, the development is well connected to the city centre and main educational institutions.
The second asset is in Dresden, in the north of the city. Totalling 4,335 sqm, the asset comprises 199 studio apartments, in the student district of “Innere Neustadt”.
Both assets will be operated by 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 student housing but persisting supply constraints.
Michael Abel, partner at TREP, said: “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, added: “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.”
