Europe: Chicago-based investment management firm CA Ventures is closing its Novel Student brand after a failed bid to sell the business.
CA Ventures is liquidating its European business after a deal to sell its overseas investment platform to GFH, a Bahraini bank, fell through after months of negotiations.
CA was attempting to sell its European student housing platform, which managed 7,000 beds and held planning permissions for another 5,000. Novel Student has properties in 13 cities across the UK, Ireland and Spain, several of which are jointly-owned with Harrison Street.
GFH signed a term sheet in the summer but decided not to invest, citing valuation declines and residual liabilities.
The collapse of the deal leaves the CA Europe business in a “dire position,” according to former CIO John Diedrich resigned from CA Ventures in June to focus on the GFH deal.
CAVEE, the investment vehicle for CA Europe, reportedly has more than £30 million in aggregate liabilities on the books.
In a letter to investors, Diedrich wrote: “Given all of this, CA has no choice but to move forward with a voluntary liquidation of the business to avoid a more costly and punitive court-led liquidation which will commence in December 2024 if CA does not take action. As such, CA Europe has begun terminating staff and will reduce to zero employees in the month of November to commence the liquidation process.”
CA Ventures is also facing serious challenges in its home country including multiple lawsuits fled against it by investors, and $75 million in delinquent loans on senior housing facilities.
Harrison Street, the company’s joint venture European partner has appointed Mezzino Student Living to operate the assets it holds jointly with CA Ventures.
