AXA IM - Real Assets has signed an agreement to acquire Groupe Kley, a fully integrated student housing and co-living operator, and its portfolio of student residences across France. The vendor is funds managed by Oaktree Capital Management. AXA IM - Real Assets will become the long-term partner of Kley and will support its management team in its strategy to further expand the company. The purchase price was not disclosed.
Kley was established in 2014 and is one of the leading operators of purpose-built student housing and co-living properties in France. Its portfolio comprises c. 2,500 beds across seven operational residences, plus a secured pipeline of c. 3,300 beds across 14 residences, many of which are currently under construction. All assets are located in either regional university cities (Angers, Toulouse, Rennes, Marseille and Caen) or Paris, Île-de-France, in close proximity to student campuses or city centres where demand is greatest. In addition to the current and secured future portfolio, this acquisition also presents AXA IM - Real Assets with access to Kley’s ongoing pipeline of student housing and co-living opportunities.
John O’Driscoll, European Head of Transactions at AXA IM - Real Assets, commented: “This transaction gives us an immediate leadership position in the highly attractive French student housing market and the opportunity to build further scale with an experienced management team. The transaction also shows our willingness to invest in operational platforms, particularly in alternative asset classes, to access attractive opportunities for our clients. It is clear evidence of our ability to secure unique investment opportunities using our strong reputation, combined local and global sector expertise and complex transaction experience. We look forward to working with Kley’s management team to grow the business, taking advantage of the very positive market dynamics and proven demand for its product.”
Jean-Baptiste Mortier, CEO of Groupe Kley, commented: “We are looking forward to pursue our development with the support of AXA IM - Real Assets. Since the beginning of our story with Oaktree, we have continuously been thinking forward with the students’ needs at the heart of our strategy. AXA IM - Real Assets shares the same vision and our strong commitment to innovate and adapt their new ways of life.”
Vincent Catherine, Managing Director at Oaktree added: “Five years ago, we launched the Kley platform from scratch with our first site in Caen. Over time we have assembled a talented team led by Jean Baptiste Mortier, defined a differentiated product, and developed a tier-one portfolio of residences so that Kley has become a unique asset in the student housing market. We believe AXA - IM Real Assets is the right partner for Kley to pursue the development of the group and its most recent initiatives going forward.”
