US: Round Hill Capital has sold its PBSA business, Nido Living, to the Canada Pension Plan Investment Board (CPP Investments).
Round Hill has also sold its stake in the existing student accommodation venture between both companies, which has more than 5,000 beds across 15 European assets.
CPP Investments has formed a new real estate investment and operating platform focused on PBSA through the acquisition of the joint venture and the full acquisition of Nido Living.
CPP will be investing CAN$40 million (£23.5 million) into the platform. Operating as Nido, the platform will be backed by CPP’s real estate investment strategy and will be a wholly owned but independently operated portfolio company with pan-European exposure.
Nido has been owned by Round Hill Capital since 2012. Michael Bickford, Round Hill’s chief executive and founder, said: “Since acquiring Nido in 2012, the business has gone from strength to strength, starting from three assets in the UK to managing over 18,000 student beds across the UK and Europe in this period, as well as diversifying into new territories. This transaction is testament to the value we have built in this award-winning business over the past 12 years and represents a successful conclusion of this investment.”
Tom Jackson, managing director, head of real estate Europe, at CPP, 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.”
