AXA IM Alts, a global leader in alternative investments with €186bn in assets under management, has secured €660mn in additional capital from institutional and sovereign wealth fund investors for its European Student Accommodation Strategy (ESAS). This brings total committed equity to €1.3bn, accelerating investment into Purpose-Built Student Accommodation (PBSA) and co-living across Europe.
Scaling The Boost Society Platform
The ESAS strategy is backed by The Boost Society (formerly KLEY Group), a leading European student housing and co-living platform. Since acquiring KLEY Group in 2019, AXA IM Alts has expanded its portfolio to 8,300 beds across 32 residences in Spain and France, integrating high ESG standards. Key milestones include:
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Expansion into Spain in 2021 under the ‘KLEY’ and ‘Campus’ brands.
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The 2023 launch of ‘Hife,’ a French co-living brand for young professionals.
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A secured pipeline of 3,900 additional beds across 10 developments, targeting nearly 12,000 beds by 2028.
The capital raise is subject to several conditions, including a works council social consultation process. The new capital partners will invest alongside existing investors, who will retain a majority stake post-transaction.
Strategic Growth in Undersupplied Markets
AXA IM Alts aims to grow ESAS into a €3bn PBSA and co-living portfolio by 2031, acquiring standing assets, new developments, and office-to-residential conversions. France remains a priority market, alongside key European cities facing a significant student housing shortage.
With a 1.2mn-bed PBSA shortfall in major European cities, demand continues to outpace supply. Over the past decade, the number of higher education students in continental Europe and the UK has risen by 15%, with a projected 10% increase by 2030/31. However, development remains constrained due to regulatory hurdles and a lack of prime locations.
Leadership Commentary
Timothée Rauly, Global Co-Head of Real Estate at AXA IM Alts, commented: “The European student housing market remains resilient due to strong demographic and societal trends. Having established The Boost Society as a market leader, this additional capital enables us to scale the platform and capitalize on sector fundamentals.”
Florence Dard, Global Head of Client Group, at AXA IM Alts, added: “The €660mn raised from European and Asian pension and sovereign wealth funds highlights the strength of our seed portfolio and AXA IM Alts’ expertise in alternative real estate investments. This capital supports our goal to build a €3bn PBSA and co-living platform by 2031.”
