This APG investment will raise the equity capacity of The Student Hotel group to â‚¬250 million. The group will invest more than â‚¬600 million in the coming 3-5 years. This spending has already started with the successful acquisition of a 20,000 m2 vacant office building in Florence.
Investing in Europe
Scottish entrepreneur Charlie MacGregor, 39, founded The Student Hotel. Headquartered in Amsterdam in 2006, the company provides full-service, state-of-the-art accommodation with all-inclusive rates to students, trainees and travellers. The Student Hotel currently operates over 2,750 rooms across six cities. It opened its first operation as The Student Hotel in Rotterdam in 2012, which recently doubled its capacity to 485 rooms to satisfy increasing demand. The Student Hotel Amsterdam West is the largest hotel in the Benelux, with 707 rooms. In the summer of 2014 a fourth location, with 310 rooms, was opened in The Hague.
This August, the first phase of the Student Hotelâ€™s 574-room flagship hotel, named Amsterdam City, opened its doors. Also, under the brand Melon District, The Student Hotel operates 597 rooms in Barcelona and 191 in Paris. Plans are underway to open further properties across Europe, bringing to life The Student Hotelâ€™s vision for a network of welcoming hubs where students from a variety of different academic institutions can make connections across the academic and social spectrum. The European expansion was initiated after an earlier equity commitment of â‚¬150M by Perella Weinberg Real Estate Fund II LP in 2014.
The company will focus on expanding in leading European university cities throughout the Netherlands, Germany, Great Britain, Italy, Scandinavia, France and Spain to attract international students, young professionals, and youth travellers, and to help rejuvenate European cities.
The ambition of The Student Hotel is to create a EUR 1 billion, core real estate portfolio, totalling over 10,000 rooms by the year 2020. Two locations are currently under development in Eindhoven and Groningen. The acquisition of a 20,000-m2 vacant office building in Florence will be finalized early October.
APG believes that The Student Hotel is one of the most exciting concepts in student accommodation today and looks forward to supporting the future growth of this successful concept in the European market. â€œWe think that the European student housing market offers a very compelling investment opportunity.â€ says Robert Jan Foortse, Head of European Property Investments at APG Asset Management. â€œThe increasing international student mobility and integrated European education market requires flexible and high quality accommodation with trusted brands such as The Student Hotel to be available in leading university cities.â€
A beneficial partnership
The Student Hotelâ€™s mission is to provide flexible accommodation to a growing number of creative and community-focused international students moving throughout Europe. The Student Hotel houses students, young professionals and youth travellers from many different nationalities in each hotel. The Student Hotel believes that building these diverse and future-focused international communities will improve Dutch and European cities, and help create a safe and inspiring space for tomorrowâ€™s entrepreneurs and thinkers to explore their passions.
ABP-chair Corien Wortmann-Kool comments: â€œBy investing in The Student Hotel, ABP supports the attractiveness of Dutch and other European university cities for local and international students. The fact that The Student Hotel rehabilitates old buildings, creates accommodation and regenerates neighbourhoods with new jobs and community facilities is, for ABP, an extra reason to invest.â€
Charlie MacGregor, Founder and CEO of The Student Hotel says: â€œThe capital increase will allow The Student Hotel to address the shortage of quality accommodation across Europe to meet local and international student needs through the accelerated roll out of our innovative accommodation model.â€