Xior Student Housing, the Belgian real estate investment company specialised in student housing in Belgium and the Netherlands, has finalised the acquisition of a redevelopment project consisting of an office complex in Amstelveen (Amsterdam), near Uilenstede, the largest student campus in the Netherlands, and close to the Free University of Amsterdam. After the intended redevelopment of the complex, this transaction will have a total investment value of circa €30m.
After the acquisition of two new student complexes in Delft and Brussels at the start of 2017, Xior is continuing to pursue its growth strategy with the purchase of an office complex for conversion located in Amstelveen (Netherlands), close to the Uilenstede student campus, the largest student campus in the Netherlands, and close to the Free University of Amsterdam. This acquisition strengthens Xior's position in the Netherlands and gives it a presence in the largest student region in the Netherlands with a huge (and growing) number of students.
After obtaining the necessary licence and the implementation of the intended conversion, this acquisition shall have a total investment value of circa €30m (furnished building), with an expected initial yield of approximately 7%. This is the first development project to be implemented by Xior as a public BE-REIT, with the expected initial yield estimated to be above the average market yield.
The building, with ca. 300 units is planned to enter into operation as of September 2018. Part of the office complex will continue to be rented for some time to come, thereby generating income of around €350,000 as of the acquisition date.
This property was acquired through the purchase of 100% of the shares in the property company involved. Furthermore, in preparation for this acquisition Xior concluded a new credit agreement with BNP Paribas Fortis totalling €25 million. Part of this sum was used to finance the acquisition.
Thanks to its location near the Uilenstede student campus, the direct public transport connections to the centre of Amsterdam and the fact that the Free University of Amsterdam is within cycling distance, the complex will constitute an ideal environment for its occupants, making it a perfect addition to the Xior portfolio.
Christian Teunissen, Chief Executive Officer of Xior: "In addition to the acquisition of student housing that is already up and running, this redevelopment indicates Xior's desire to also carry out development projects and receive an expected rate of return that is more attractive overall."
