A Strategic Partnership for the Future of PBSA in Europe

The European student accommodation (PBSA – Purpose-Built Student Accommodation) market is experiencing a period of unprecedented transformation and growth. With a structural undersupply in key university cities and increasing demand driven by demographic factors, this real estate niche has become a focal point for global investors. In this dynamic scenario, a strategic partnership between Ardian, a world-leading private investment house, and Rockfield, an integrated student accommodation platform, promises to redefine the landscape of this sector across Continental Europe.

Ardian: A Global Force in Private Investment

Ardian is a world-leading private investment house, managing or advising $180 billion in assets on behalf of more than 1,680 clients globally. Founded in 1996, the company is characterized by a forward-thinking vision and a commitment to long-term value creation, believing that every decision should have a positive, broad, and enduring influence. Its vast expertise spans Private Equity, Real Assets, and Credit, allowing it to offer tailored and flexible investment solutions.

With more than 1,050 employees spread across 19 offices worldwide, Ardian prides itself on a culture of excellence and shared values, with a strong focus on sustainability. The company uses a proprietary methodology to measure and monitor ESG performance, seeking to deliver tangible results. In the real estate sector, Ardian brings local teams with deep market knowledge and technical and financial expertise through all phases of the investment cycle.

In the context of this partnership, Matteo Minardi, Head of Real Estate Italy and Managing Director at Ardian, highlighted the "unprecedented window of opportunity" to invest in European PBSA markets, given the lack of liquidity and structural undersupply in leading university cities, combined with increasing demand predominantly driven by demographics.

Rockfield: Specialists in Sustainable and Integrated Accommodation

Rockfield Real Estate was established in 2014 with the clear mission to create high-quality and sustainable housing solutions for young professionals and students in urban areas. The company recognized the growing demand for affordable housing in major cities and the increasing need for innovative living concepts that not only provide a place to live but also enable residents to grow and thrive within a community.

Rockfield operates as a fully integrated real estate platform, managing all aspects from project development and acquisition to investment and property management. This approach allows it to offer tailored solutions for investors and tenants. Since its inception, Rockfield has experienced impressive growth, evolving into a leading investment manager with a portfolio of over €1 billion in assets under management and around 5,000 housing units across various European cities. The company has a strong PBSA investment track record, having developed and managed 5,000 units over the last 10 years, with strong sourcing capabilities and deep market knowledge.

Juan Acosta, Partner and CIO at Rockfield, emphasized that the strategic partnership with Ardian starts with "probably one of the largest pots of dry powder capital ready to invest in student accommodation across the continent". Sonia Gonzalez Valverde was also appointed Non-Executive Senior Advisor by Rockfield.

The Ardian Rockfield European Student Accommodation Fund: Shaping Tomorrow

Ardian and Rockfield have launched a long-term strategic partnership to invest in Purpose-Built Student Accommodation (PBSA) across Continental European markets. This fund, named the Ardian Rockfield European Student Accommodation Fund, aims to capitalize on the growing demand for high-quality student accommodation and the existing structural undersupply.

Key Fund Details:

• Primary Focus: To create a diversified portfolio of high-quality PBSA assets. The objective is to address the supply-demand imbalance in key European university cities / leading education hubs.
• Investment Strategy: The Fund adopts a Core+ strategy, aiming to create value by enhancing the operational performance of its assets. This includes acquiring existing income-generating properties with potential for rent increases and refurbishment programs, as well as forward acquisition opportunities to invest in new, high-quality student residences at earlier stages of development.
• Capital Base: The Fund has an equity target of over €1 billion. The first closing raised €500 million in equity, with an initial commitment of €500 million from CBRE Investment Management through its Indirect Private Real Estate Strategies, on behalf of global institutional investors.
• Geographical Focus: Investments will be directed towards Continental Europe, with a specific focus on the following Eurozone countries: Italy, Spain, Germany, France, the Netherlands, and Portugal.
• Sustainability: Sustainability is at the core of the strategy. All acquisitions and developments will be designed to meet the highest environmental standards, with a focus on alignment with a net-zero pathway and reducing GHG emissions (Scope 1 and 2) in line with the Paris Agreement. The strategy will also seek to procure renewable energy.
• Partnership Structure: Ardian will act as the investment manager, utilizing its local expertise and sustainability know-how. Rockfield will work alongside Ardian to identify investment opportunities and will provide asset management, property management, and development services.
• Portfolio (Examples): The fund's portfolio already includes assets like Minerva Haven (Amsterdam, 596 studios), Novoli (Florence, 404 compact studios), Cristóbal de Moura (Barcelona, 347 studios), Laude Living (Bologna, 532 apartments), More (Leiden, 703 studios), and Muse Campus Randwyck (Maastricht, 506 studios). The acquisition of Nido Muse & More in the Netherlands was also announced. The first transactions of the fund are expected to be concluded before year-end.

Line Verroken, Senior Director at CBRE IM Indirect Private Real Estate, emphasized that "the student housing market across Continental Europe presents a compelling and resilient growth opportunity, while the investment landscape is fragmented". This pan-European strategy will enable them to strategically access this attractive asset class by leveraging the combined expertise of Ardian and Rockfield.

In conclusion, the collaboration between Ardian and Rockfield represents a significant step in the professionalization and expansion of the PBSA market in Europe. With a strong focus on sustainability, established expertise, and substantial capital, this fund is positioned not only to generate robust returns but also to shape the future of student accommodation for generations to come.