TPG Real Estate Partners and Round Hill Capital have acquired two residential complexes for student living in Germany. The assets, situated in the cities of Munich and Dresden, were purchased for a total consideration of c.€68m through TREP and Round Hill Capital’s strategic joint venture formed in July 2019. The two assets acquired by the Venture will further strengthen TREP and Round Hill Capital’s growing portfolio of high-quality student accommodation assets in Germany. The student housing platform now totals over 2,500 units across the country’s major university cities including Berlin, Stuttgart, Munich and Dresden.
Both institutional assets are fully operational and require limited development following the acquisition. The first property complex, Alp Studios, comprises 287 studio apartments across 6,121m². Located in the district of Obersendling in the South of Munich, the development benefits from excellent accessibility to the city centre and main educational institutions. The second asset is located in Dresden, in the north of the city. Totalling 4,335m², the asset comprises 199 studio apartments, in the vibrant student district of “Innere Neustadt”.
Michael Abel, Partner at TREP, commented: “The acquisitions of these high-quality assets in Munich and Dresden will make excellent additions to the Venture’s student housing platform. We look forward to further enhancing the portfolio through new acquisition and development opportunities as we seek to build an institutionalised platform of best-in-class assets at scale across Germany, where demand for quality student living remains high.”
Michael Bickford, Founder and CEO at Round Hill Capital, said: “We are delighted to announce our latest German purpose-built student accommodation acquisitions with TPG Real Estate, further establishing Round Hill Capital’s reputation as one of Europe’s leading student accommodation investors. Whilst Covid-19 has presented short-term challenges, the deal highlights the resilience of the PBSA sector and the ongoing appetite for high-quality student accommodation assets across Europe’s major cities. By leveraging our on-the-ground German team, we plan to unlock further value for these assets and the platform as a whole.”
