Xior Student Housing has signed a deal with Basecamp Group, European Student Housing Fund I and European Student Housing Fund II to purchase Basecamp's portfolio of private student accommodation for €939 million.
The portfolio consists of 5,341 rooms in 11 newly developed properties (eight already being in use, three under development). All properties are located in student cities in Germany, Poland, Denmark and Sweden. Basecamp is a developer and manager specializing in student housing. This transaction is part of Basecamp’s investment strategy to acquire, develop, and operate high-quality student accommodation to the benefit of maximising Basecamp's investor returns. Besides the acquired portfolio, ESHF II has seven projects under
development.
For Xior, the purchase equals an increase in the total fair value of the portfolio to €3.7 billion (up 32 pct). The company's assets now include 26,526 rooms in 43 university cities in eight countries, serving a target market of 8.5 million students.
The assets included in the sale will continue to be operated under the Basecamp brand and comprise:
• Potsdam, Germany (263 units/beds)
• Leipzig, Germany (385 units / 412 beds)
• Łódź I, Poland (487 units / 624 beds)
• Łódź II, Poland (631 beds)
• Katowice, Poland (733 beds)
• Copenhagen South Campus, Denmark (350 beds)
• Lyngby Student, Denmark (639 beds)
• Lyngby Residential, Denmark (147 one- to three-bedroom apartments)
• Aarhus, Denmark (663 beds) – in development
• Malmö, Sweden (583 beds) – in development
• Aachen Bluegate, Germany (460 beds) – in development
The transaction will create value for all shareholders of the pro forma group and will be earnings accretive as of the first year (including the approx. €252 capital increase).
The purchase will be financed with approx. €252 million of equity, approx. €85 million of existing debt and about €301 million of new financing. Three investments that are still under development are expected to be finished for approximately €121 million.
Christian Teunissen, CEO Xior: "From Xior’s start in 2007, we have continued to grow and professionalise. The company rapidly evolved from a small family business into a true professional student housing player. With this milestone acquisition of Basecamp, we will continue our growth story by adding not only 3 new countries but also 11 state of the art, sustainable assets which are a perfect fit to our existing portfolio and future vision and will further strengthen our position as the market leader in continental Europe. I am confident that the combined expertise of our teams will help bring Xior to the next level.”
Armon Bar-Tur, Executive Chairman Basecamp: “From its inception, Basecamp has been a pioneer in the regions in which it operates, with high-quality student accommodation and a community-led experience at its core. We outpace our competitors through our in-depth understanding of the GenZ audience that we attract. Xior and Basecamp will revolutionise the PBSA market by bringing together our complementary portfolios of properties. We will offer students across Europe the opportunity to live in inspiring rooms and life-enriching shared spaces. Our teams are delighted to come together and continue the exciting evolution of PBSA.”
