Bouwfonds Investment Management (Bouwfonds IM) is planning further growth in the area of student housing. A second student housing fund, Bouwfonds European Student Housing Fund II, is currently in the planning stages. The target investment volume has been set at €400m, distributed across economically strong cities in the Eurozone and Poland. Bouwfonds will mainly focus on sustainable investments in modern properties with affordable rents in strong locations. In addition, the investment focus will be expanded so that the new fund can also acquire operator-run student housing. This improves market access as many properties are only available in conjunction with their operators. Projected returns (IRR) for the Bouwfonds European Student Housing Fund II are expected to reach 5%.
“Demand for student housing investment opportunities continues to be high among institutional investors, as we’ve learned from numerous discussions with European investors,” said Martin Eberhardt, managing director client relations of Bouwfonds IM. “With our second fund in this sector, we’re able to offer interested investors a very good product. In recent years, Bouwfonds has become a frontrunner and market leader in the student housing segment, building up a very good pan-European track record,” Eberhardt said.
Since 2010, the company based in the Netherlands has purchased a total of 24 student housing properties with a total volume of €433m. The properties are located in Germany, the UK, France and the Netherlands and comprise around 5,650 residential units.
“In addition to an attractive portfolio, we also have a very well-endowed acquisition pipeline,” added Michiel Dubois, managing director residential real estate. “It seems we are able to break the €500m mark in the acquisition of student housing in Europe.”
Bouwfonds’ initial student housing fund, Bouwfonds European Student Housing Fund I, has been fully placed since the end of 2015, and is now nearing the end of its investment phase, set to be completed by the end of 2016. Therefore the asset management of this fund will pass to Catella Real Estate AG at the end of the year, in accordance with the shareholders.
