Apeiron Capital has announced their launch of a new student housing platform with a target size of approx. €417 mln (£300 mln). Additionally, Apeiron has announced its first acquisition, a 100-bed student housing property in Stratford, London, for approx. €14.38 mln (£10.35 mln). The transaction offers an initial gross yield of 8.5%. Apeiron estimates its current pipeline of near term acquisitions at a further approx. €69.5 mln (£50 mln).
Located on Stratford High Street and close to both Stratford and Stratford High Street stations, the property benefits from strong transport links and its proximity to local amenities at Westfield shopping centre. The asset’s strategic location and existing layout provides a strong opportunity for rental growth in addition to offering further development opportunities in the medium to long term.
The building, managed by student housing specialist The Mansion Group, is let to Goldsmiths, University of London, with two years left on its existing lease. This represents Apeiron’s first deal in the London student housing market and follows the €100 mln acquisition of a portfolio of 837 residential and 68 commercial units within 25 German residential buildings undertaken in partnership with Kauri CAB Management GmbH and a global Sovereign Wealth Fund announced in September.
Vojkan Brankovic, Managing Partner, Apeiron Capital commented: “The student housing market has performed well in recent years and strategically-located assets, particularly those with potential for renovation, continue to offer attractive returns for investors. The relatively opportunistic yield coupled with the potential for further rent maximisation and development will allow Apeiron Capital to employ its’ strong asset management expertise to drive returns on behalf of its investors. We are pleased to complete this first acquisition in our new platform and look forward to working with The Mansion Group to provide excellent accommodation for the building’s student occupiers.”
Maclay Murray & Spens LLP and JLL acted for Apeiron.
Source: Apeiron Capital
