Singapore sovereign wealth fund GIC and Dutch pension fund APG have agreed to take control of The Student Hotel at a €2.1 billion valuation (around $2.2 billion) with students returning to campus as the pandemic eases.
Headquartered in Amsterdam, TSH has locations in eight European countries. The company operates a hybrid model that offers student accommodation, hotel rooms, coworking spaces, bars and restaurants.
The deal comes at a time when demand for accommodations is growing in line with Europe’s student population. According to a report from real estate group Savills in December, student numbers increased significantly across several European countries in 2021, particularly in the Netherlands—where TSH has most of its locations—which saw a 6.4% increase in students.
The student increase is understood to be driven by some countries, including France and Netherlands, making university entry tests easier during the pandemic. A tight labor market and scarce job opportunities are also said to have pushed more young people into higher education. Meanwhile, travel restrictions had limited sabbatical plans, meaning more people have returned to school.
GIC has already made big bets on student housing in Europe. Last month, the Financial Times reported that GIC had teamed with Greystar Real Estate Partners to buy UK housing provider Student Roost from Brookfield Asset Management for £3.3 billion (about $4.05 billion). Other significant PE deals in the space in recent years include Blackstone‘s £4.66 billion acquisition of UK-based iQ Student Accommodation in 2020 and Greystar’s acquisition of five UK student housing assets from KKR for £291 million in February 2021.
This latest translation will see APG, which first backed TSH in 2015, and TSH founder Charlie MacGregor increase their stake in the business. MacGregor launched the business in 2012. TSH will use the new investment to expand from 25 to 50 hotels under ownership today, with 15 currently in operation.
Featured image by Ana Fernandez/Getty Images
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