Xior Student Housing NV, the Belgian real estate investment trust specialising in the student housing in Belgium and the Netherlands, has acquired a new building project in Groningen. This transaction has an investment value of approximately €20m and is expected to have an initial yield of 6.5%. The completion and commissioning are planned for April 2018, whereby a brand new complex will be added to Xior's portfolio in one of the largest student towns in the Netherlands.
The project is part of the renewal of the Oosterhamrikkade and the Stadswerf and lies in a favourable location near the centre of Groningen, the University Medical Centre of Groningen (UMCG) and is within biking distance of various other university facilities and colleges.
The building consists of 180 independent student units with an average surface area of 31.8 m², and also offers such communal areas as an indoor bicycle parking garage and a common outdoor space.
From a construction perspective, the earthquake resistance of the building was also taken into account, as the building will be erected according to the New Construction regulations of the NAM, whereby the earthquake resistance is included from the beginning of the design process. In this regard, the foundation will be built to absorb a difference in height of up to 10cm.
Pending the planned completion, Xior will be provided a return guarantee by the seller valued at €650,000, whereby this project will already generate income from the moment of acquisition.
Christian Teunissen, CEO of Xior: "With this project, we add another quality student building to the portfolio and expand the presence of Xior in the Northern part of the Netherlands which enables us to offer housing to students in nearly all of the largest student towns in the Netherlands."