Canadian pension fund CPP buys Round Hill PBSA interests

Canada Pension Plan Investment Board (CPP Investments) has acquired student accommodation business Nido Living from Round Hill Capital.

The brand, which functions as an operator and property manager of purpose-built student accommodation and residential for rent, currently has a portfolio of more than 7,000 beds, including 3,500 under development. These assets are located in Denmark, Ireland, the Netherlands, Portugal, Spain and the UK.

As part of the deal CPP Investments is also acquiring Round Hill’s stake in RHESA – Round Hill European Student Accommodation Partnership – a separate 5,000-bed student housing JV that the two investors established in October 2021 and which has 15 assets across Europe. CPP Investments put equity of €475 million into RHESA when it was founded, doubling this in August 2022.

The Nido Living brand was created by Blackstone in 2006, and has developed or managed a total of over 18,000 beds across the UK and Europe under Round Hill Capital’s ownership.

Round Hill owned Nido Living since 2012, having acquired the company from Blackstone for £415 million. In 2015, Nido London sold a portfolio of three London assets to Greystar for £600 million.

“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,” Round Hill Capital CEO and founder Michael Bickford said.

“As an investment manager, Round Hill Capital continues to see significant value in the student and other residential sectors, which remain integral to our investment strategy going forward.”