Ivanhoé Cambridge Holdings UK Ltd, Bouwinvest Real Estate Investors and Greystar Real Estate Partners LLC have formed a new joint venture, ‘develop-to-core’ venture, focused on funding purpose-built student accommodation (PBSA) and young professional accommodation in the Greater Paris Region, with an investment capacity of €1 billion.
The joint venture plans to acquire new developments as well as projects already under construction. The joint venture has already identified a significant pipeline of acquisitions in the Paris region and will focus on initial acquisitions in the coming months.
The joint venture invests in high-quality housing, including services and facilities for students and young professionals, in locations that are easily accessible by the extensive public transport network in and around Paris. This focus is in line with the strategies of the joint venture partners in other European cities with investments in locations where employment is stable and demand for rental properties is still increasing, such as Amsterdam, London and Vienna.
‘The French capital has a great shortage of student housing with associated facilities, which offers attractive investment opportunities.‘
”Paris is home to a large number of world-class research institutions and universities, a vibrant cultural sector and strong employment, attracting domestic and foreign students and young professionals. The French capital has a great shortage of student housing with associated facilities, which offers attractive investment opportunities,” said Bouwinvest in a statement.
“The Paris region and the co-living markets for students and young professionals are important growth markets in our European strategy. At the same time, the COVID-19 crisis has accelerated the need for more premium flexible products and services in key locations. We therefore believe that this is the right time for this step. The housing market for alternative forms of housing is well positioned in relation to these trends and Paris remains very attractive because of the size and high quality of higher education and the continuing high demand for student housing. We are very happy with Bouwinvest and also with Greystar, one of our most important strategic partners worldwide,” Karim Habra, Head of Europe & Asia-Pacific, Ivanhoé Cambridge.
“The foundation for this investment is strong. In urban areas around the world, we see a large and growing demand for affordable housing for students and starters in the housing market. We previously invested in Dutch and Australian student housing. With this investment we further respond to these developments and we also strengthen our allocation to France and in particular the Paris region. The investment contributes to Bouwinvest’s objectives to achieve a solid return in the long term in a sustainable and socially responsible manner. We know Ivanhoé Cambridge and Greystar well and they are excellent partners,” said Robert Koot, Director European Investments, Bouwinvest.
”We have been operating in France for almost two years and have built up a successful portfolio of own and managed assets across the country. This new venture with Ivanhoé Cambridge and Bouwinvest will significantly accelerate our plans and leverage our expertise in investing, developing and operating high-quality student housing worldwide to build a highly valued portfolio in a global city with strong market fundamentals and a persistently high demand. Paris is home to a large number of world-class research institutions and universities, has a vibrant cultural sector which continues to attract domestic and foreign students and young professionals,” Hideki Kurata, Managing Director – France, Greystar.