Xior Student Housing buys 11-asset portfolio for €939 million

Xior Student Housing has announced a big leap forward in its international expansion with the acquisition of a €939 million portfolio of eleven prime assets in Europe developed and operated by Basecamp.

One of the assets in the portfolio in Lyngby in Denmark

Through the transaction two European market leaders join forces, creating Continental Europe’s largest student accommodation platform.

The PBSA assets, that have 5,341 units, are located in Poland, where Xior already has a presence, and in top-tier student cities in Germany, Denmark and Sweden, three countries where the group is making its debut. Of the 11 newly-built assets eight are already operational, generating income from day one, and three are projects under development.

Christian Teunissen, CEO, Xior

“From Xior’s start in 2007, the company has rapidly evolved from a small family business into a true professional student housing player,” said Christian Teunissen, CEO, Xior. “With this milestone acquisition of Basecamp, we will continue our growth story by adding not only three new countries, but also 11 state-of-the-art, sustainable assets which are a perfect fit to our existing portfolio and will further strengthen our position as the market leader in Continental Europe.”

The portfolio will have a total of 26,526 units and a presence in 43 University towns in eight European countries, serving a target market of 8.5 million students.

“Xior and Basecamp will revolutionise the PBSA market by bringing together our complementary portfolios of properties,” said Armon Bar-Tur, executive chairman, Basecamp. “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.”

The acquisition will lead to an increase in the total fair value of the portfolio to €3.7 billion, a 32% rise, Xior said, and will strengthen its sustainability credentials, as it is adding properties built to BREEAM Very Good or equivalent standards to the portfolio.

Post transaction, EPRA earnings per share are expected to increase 15%, from €2 to €2.07 in 2022 and from €2.20 to €2.38 in 2023, the group said, creating value for all shareholders from the first year.