CPP Investments allocates additional €475m to European PBSA joint venture

CPP Investments allocates additional €475m to European PBSA joint venture

Canada Pension Plan Investment Board (CPP Investments) has allocated an additional €475 million (C$656 million) equity to the European student housing joint venture with Round Hill Capital, furthering the initial allocation of €475 million.

The JV, Round Hill European Student Accommodation Partnership, formed in October 2021, invests in high-quality purpose-built student accommodation (PBSA) in major cities across Europe and is one of the largest European student accommodation partnerships.

Following this allocation increase, the JV is capitalised to target a diverse portfolio of over €2 billion in assets, said CPP Investments in a press release.

Since establishment, RHESA has secured over 5,000 beds across Europe, with sites acquired in: Maastricht and Leiden (Netherlands), Lisbon and Porto (Portugal) and Madrid, Seville and Valencia (Spain). The assets will primarily be operated by Nido Student, a market-leading student housing brand owned by Round Hill Capital.

“We continue to see strong and compelling opportunities for student housing in Europe – as both domestic and international student populations continue to grow and seek high-quality accommodation, which is in short supply across many European cities,” said Tom Jackson, Managing Director, Head of Real Estate U.K., CPP Investments. “Round Hill Capital, together with the expertise of Nido Student, have been strong partners since the establishment of the joint venture. Furthering our allocation to RHESA will allow us to continue to drive long-term value for CPP contributors and beneficiaries through this thematic investment strategy.”