Europa Generation, a joint venture between pan-European real estate investment manager, Europa Capital and Generation Student (“Generation”) has raised new capital of circa £100 million for the Europa Generation Student Fund (the “Fund”), from a number of global institutional investors. The Fund currently has assets under management of £180 million comprising 1,561 beds which are operational in Bath, Newcastle, Sheffield, Aberdeen and Bournemouth and a further 144 beds in Oxford that are due to become operational this summer.
By establishing a portfolio of modern purpose-built student accommodation in UK cities, Europa Generation’s strategy looks to exploit favourable market dynamics and deliver a sustainable and growing income return to investors. Student accommodation is a mature and liquid asset type, offering highly resilient asset performance, strong rental growth and significant occupational excess demand over supply, driven in part by strong demand from international students.
Europa Capital and Generation’s combined track record in the “living” markets is in excess of 12,000 bed spaces across PRS and student accommodation in key UK and European locations. Europa Generation further benefits from Generation’s track record in building two internationally recognised customer focused operational brands, Nido Student Living and Pure Student Living, with a combined asset value in excess of £1 billion.
Tim Turnbull, Partner at Europa Generation, said: “The opportunities for institutional investors to access the PBSA market in collective vehicles are limited. Therefore, our ambition is to scale the Europa Generation platform, broaden our investor base and to grow the Student Fund’s portfolio throughout the United Kingdom.”
Alan Artus, Partner at Europa Generation, added: “The student accommodation sector remains a highly attractive market that is resilient to economic headwinds and continues to offer favourable supply and demand dynamics. The shortage of modern, high quality accommodation in leading university towns and cities is demonstrated by the strong level of demand we have seen across our operational portfolio”
For further information, please contact:
Dido Laurimore/ Richard Sunderland/ Eve Kirmatzis/ Andrew Davis
FTI Consulting
Tel: 020 3727 1000
EuropaCapital@fticonsulting.com
Notes to Editors:
About Europa Capital:
Europa Capital is a dedicated real estate investment manager focused on the European markets. We specialise in investment through both equity and debt strategies where we employ our real estate asset management skills and experience to maximise value in all property classes across Europe.
Since its formation in 1995, Europa Capital has collectively raised ten real estate funds and committed to over 130 transactions totaling more than €11.3 billion across 20 European countries.
Europa Capital focusses on delivering compelling risk adjusted returns for a global audience of investors driven by real estate fundamentals spanning value-add, core/core plus and debt investment strategies.
Europa Capital has an established track record in the residential sector having invested in or developed over 7,000 bed spaces across PRS and student accommodation in key UK and Continental European locations.
Europa Capital is majority owned by Mitsubishi Estate Co. Ltd, one of the world’s largest real estate groups, which is a strategic investor alongside Management. Europa Capital Partners LLP and Europa Capital LLP are authorised and regulated by the Financial Conduct Authority.
Further information can be found at www.europacapital.com.
About Generation:
Established by Alan Artus and Gareth Davies, Generation Estates have been active in the PBSA market since 2003, with experience covering all aspects of the development process, creation of operational management platforms and on-going asset management. During this period Generation Estates developed and operated over 5,300 PBSA beds with a value in excess of £1 billion. Along with Nick Kinder, Generation Estates established Generation Students LLP in 2016.
Track Record – Student Housing
Between 2004 and 2012, Generation Estates created the Nido Student Living branded portfolio of 2,521 beds in joint venture with the Blackstone Group. The project redefined PBSA in London by proving that there was substantial demand, particularly from international students, for a higher quality, well managed product. The platform was sold for c.£415m in 2012.
Between 2010 and 2015, in partnership with the Carlyle Group, Generation Estates developed and operated the Pure Student Living Portfolio, which comprised 2,170 beds throughout central London. The five properties that comprised Pure Student Living were sold in 2015 for a total consideration of £530m.
Since 2015 Generation Estates has assisted Hattington Capital in the design, development and operation of a new Dublin based offer of 576 new purpose built student beds in two new buildings under the highlight brand.
Further information can be found at www.europageneration.com.
