Canada Pension Plan Investment Board (CPP Investments) has created a 5,000-plus bed European student housing platform by acquiring Nido Living and taking full ownership of an existing joint venture with Round Hill Capital.
Round Hill Capital acquired Nido Living in 2012 and formed a European student accommodation investment partnership with CPP Investments in late 2021.
CPP Investments said it is investing up to C$40m (€27.4m) to establish the wholly-owned real estate investment and operating platform focused on purpose-built student accommodation (PBSA) in continental Europe.
The new platform, known as Nido, will operate independently under CPP Investments’s real estate strategy. In addition to managing the existing CPP Investments portfolio, Nido will continue to manage PBSA assets for other international investors.
The initial focus for the platform will be Germany, Italy and Spain, with a strategy of acquiring and developing new assets to create a pan-European portfolio.
Tom Jackson, managing director and head of real estate Europe at CPP Investments, said: “CPP Investments and Nido together are well placed to meet the increasing demand across Europe for high-quality PBSA. Premium quality and affordable student housing is in high demand due to increased student mobility and growing participation in higher education.
“In Europe, student populations are increasing as labour markets upskill, resulting in growing pressure for accommodation, positioning this platform well to deliver strong risk-adjusted returns for the CPP fund.”
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