Allianz Real Estate
Olivier Téran - Allianz Real Estate
According to Olivier Téran, the CIO of Allianz Real Estate, “This joint venture with Greystar and PSP Investments underlines our strategic commitment to scale up our global allocation to high-quality student accommodation in established markets.
Munich-headquartered student housing specialist International Campus AG has launched €1bn student housing fund with €600m in cornerstone capital already raised from insurer Allianz and another European investor, represented by CBRE Global Investment Partners. International Campus is co-investing and will operate the properties.
The 'Fizz Student Housing Fund', named after International Campus's main brand 'The Fizz', is intended to operate as a long-term investment vehicle and will help accommodation specialist International Campus expand across Europe with its accomodation for students and young professionals.
International Campus is already active in Germany and the Netherlands, and plans to expand into Austria where it is targeting 15,000 apartments under management by the end of 2020.
The new fund is being seeded with four fully leased German properties containing 1,200 apartments in Berlin, Darmstadt, Frankfurt and Hanover. It is also acquiring four project developments with more than 1,600 apartments in Aachen, Frankfurt, Hamburg and Cologne. Preparations are underway for the acquisition of further investments.
The fund, which will have an equity ratio of 70%, has an initial term of 10 years, which can be extended by its investment committee.
Olivier Téran, CIO of Allianz Real Estate, said: “We see student housing as an attractive growth market with an appealing risk/opportunity profile and considerable development potential. International Campus, with its strong platform and branding, is an ideal partner for us for student housing as part of our investment strategy.”
Rolf Engel, chairman of the supervisory board of International Campus, said: “Demand for the new fund and the decision of Allianz clearly show that well-managed, high-quality residential buildings for young target groups have long since become an attractive asset class in their own right for large institutional investors.”
Horst Lieder, CEO of International Campus in Munich, added, On the basis of the ‘student lifecycle’ and the integrated ‘THE FIZZ’ brand and product strategy, International Campus AG offers innovative and high-quality housing opportunities for apprentices, students and young professionals. With this horizontal diversification, a digital sales strategy and our distinct operator expertise, we have created a competitive edge that we intend to keep on expanding."
Institutional investment in student housing has been gaining momentum in recent months. Just this week, Hines moved into the Irish market on behalf of German pension funds and PensionDanmark made its first major student-housing deal.
Earlier this year, Singapore’s sovereign wealth fund GIC begun investing in student housing in the UK and Germany with Dubai-based specialist operator GSA. The initial investment was for a portfolio of 1,000 beds, in Frankfurt, Darmstadt, Münster and Dresden, with a pipeline of a further 1,500 beds. The properties are being operated under GSA's Uninest brand, which provide specialist management – including everything from viewing to booking to billing, high-speed internet provision and on-site community management.
Both companies said in a statement at the time, “Purpose-built and managed student accommodation is a completely new concept for the German rental market, designed to meet the needs of both millennial students and also universities who seek to enhance the attraction of their institutions.”
