KKR sells two student housing assets in Netherlands for €190m

KKR sells two student housing assets in Netherlands for €190m
Zernike Tower Image: Courtesy of Xior Student Housing NV

KKR today announced that it has sold two major student housing developments in the Netherlands, totaling 1,380 units, for €190 million to Xior Student Housing NV and Greystar Real Estate Partners LLC.

Xior Student Housing NV, the Belgian public regulated real estate company (RREC), also announced on Wednesday the acquisition of Zernike Tower, c.700 units in Groningen.

”The total expected investment value amounts to approx. 91.5 MEUR with a total expected yield of approx. 6%,” said Xior in a statement.

The 23-story Zernike Tower in Groningen recently opened in August this year and achieved full occupancy shortly thereafter, offering 698 fully furnished independent studios. It is strategically located, close to the city centre and the Zernike student campus of Groningen, one of the top 4 student cities in the Netherlands, with a high percentage of international students.

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“We are extremely proud to acquire this top-notch, brand new operational tower, thereby gaining a firmer foothold in the heart of one of the most important student cities in the Netherlands, which is characterised by an acute shortage of qualitative student housing. With its 74m height, Xior is happy to join the skyline of Groningen. It is a great achievement to acquire such a large operational asset, immediately generating rental income. A perfect example of accretive & sustainable growth!” said Christian Teunissen, CEO of Xior.

Greystar Real Estate Partners LLC acquired student accommodation units in Utrecht. The student accommodation complex in Utrecht comprises a total of 682 units split between a newly constructed 24-storey building (463 units) and a refurbished former hospital wing of nine storeys (219 units) that were completed in October 2020, located in close proximity to Utrecht University and the city centre.

“With these investments, we have helped address the growing demand for quality and well-located affordable accommodation in the Netherlands that also contribute to the local community and economy. We see the Netherlands as an important real estate market and will continue to look for opportunities to invest in delivering quality assets to benefit from the continued pipeline of demand. We wish Xior Housing NV and Greystar every success with the acquisitions in Groningen and Utrecht,” said Seb D’Avanzo, Managing Director in European Real Estate at KKR.