Assembly, the pan-European development platform backed by MARK Capital, has partnered with French real estate investment manager Eternam to deliver two major office-to-student-housing conversions in western Paris, targeting a market where vacancy rates in traditional office stock continue to climb while student accommodation demand remains critically undersupplied.
The partnership has acquired two vacant office buildings in Issy-les-Moulineaux and Boulogne-Billancourt, which will be repurposed into more than 500 beds of high-quality purpose-built student accommodation (PBSA) with ground-floor retail. The strategic repositioning addresses a growing trend across European capitals where obsolete office assets are being transformed into residential and student housing to meet acute demand shortfalls.
In Issy-les-Moulineaux, the existing office building will be replaced with a newly built 7,000 m² scheme comprising 300+ student units, alongside ground-floor retail amenities. In Boulogne-Billancourt, a 5,000 m² office structure will be restructured to accommodate 200+ student housing units, also complemented by retail space. Both locations sit within Paris' western ring, prime territory for student housing given proximity to major educational institutions and transport links.
The projects align with mounting investor appetite for the sector. A recent Savills survey of European investors in operational real estate found PBSA has become the most sought-after sector for investment, with 62% of respondents intending to target the sector over the next three years. For developers, the opportunity lies not only in strong yields but in securing planning approvals more readily for residential conversions than new-build offices in supply-saturated markets.
"These projects reflect our conviction in the student housing sector as a resilient and countercyclical asset class, particularly in supply-constrained prime urban locations anchored by top-tier educational institutions," said Jean-Charles Equoy, CEO of Assembly. "At the same time, they are indicative of Assembly's wider strategy: revitalising under-utilised urban assets into highly investable real estate in Europe's most sought-after sectors and locations."
"We strive to mobilise private capital for projects to transform obsolete buildings into modern student residences, in order to meet a strong social need. This fits in perfectly with the strategy of the Solstice fund, which has now made its third acquisition and will continue to benefit from a market that is generating opportunities," added Frédéric Maxwell, Deputy Managing Director of Eternam. Established in 2018, Assembly has managed and executed close to €3bn of projects to date, representing approximately 135,000 m² of commercial and residential floorspace. Eternam manages more than 14 collective funds and 40 club deals, representing over €1.4bn in assets under management.
People mentioned:
Companies mentioned:
- Assembly, pan-European development platform
- MARK Capital, investment manager
- Eternam, French real estate investment manager
- Savills, real estate advisory
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