TPG Real Estate Partners (TREP), the dedicated real estate equity investment platform of global alternative asset firm TPG, and Round Hill Capital have acquired, through a newly-formed strategic venture, a portfolio of 13 student accommodation assets in Germany. The assets, which were formerly owned by student housing platform Deutsche Real Estate Funds, were acquired through a mutual agreement with all stakeholders. Financial terms of the transaction were not disclosed.
The assets acquired by the venture consist of approximately 2,100 units across nine cities in Germany, including Berlin, Bremen and Stuttgart. The assets are generally situated within easy commuting distance to some of Germany’s major universities and key amenities across each city. The venture will leverage TREP and Round Hill Capital’s experience managing and investing in European real estate portfolios to enhance the properties through refurbishments and operational improvements. The acquisition marks TREP and Round Hill Capital’s first joint transaction in Germany and second joint investment in the student accommodation sector.
Michael Abel, Partner at TPG Real Estate, commented: “The student population in Germany is one of the largest and fastest growing in Europe. Despite this, the country’s student housing sector is still underdeveloped, with few institutional operators of scale. We are pleased to partner with Round Hill Capital and all existing stakeholders on this complex transaction to bring more high-quality accommodation options to students across the country. The acquisition highlights TREP’s ability to source, carveout, and invest behind value-add assets in key European locations that are benefiting from strong economic fundamentals. We look forward to building and enhancing the portfolio.”
Michael Bickford, Founder and CEO of Round Hill Capital, said: “Round Hill Capital has long-established expertise and capabilities as an investor in student accommodation and wider residential housing, with a focus on responsible, hands-on asset management. We have a 17-year track record of successfully investing in and reliably operating residential housing in Germany. The acquisition of this portfolio of student accommodation assets across Germany is TREP and Round Hill Capital’s first joint transaction in the country. We are committed to bringing our expertise in the student housing sector to the German market and plan to make further investments in line with this new strategy and growth plans to build a substantial and well-managed platform in Germany. Round Hill Capital continues to expand its business across wider Europe and international markets in line with our existing strategies in the accommodation and logistics sectors.”