CPP doubles down on European student residence JV with Round Hill

CPP Investments has allocated a further €475m to the joint venture, mirroring its initial allocation.

  • The joint venture is now capitalized to target a portfolio of over €2 billion in assets
  • Nido Student, a Round Hill Capital portfolio company, primarily operates the assets
  • The joint venture has secured over 5,000 beds across Europe

Canada Pension Plan Investment Board (CPP Investments) announced on Wednesday that it has made a further equity allocation to its joint venture with Round Hill Capital, Round Hill European Student Accommodation Partnership. The further allocation of €475 million matches CPP’s initial allocation and means the joint venture is capitalized to target a portfolio of over €2 billion in assets.

The joint venture was formed in October. It invests in purpose-built student accommodation across major European cities and is one of the largest European student accommodation partnerships. It has secured over 5,000 beds across Europe. Round Hill Capital portfolio company Nido Student manages the assets. Round Hill Capital and Nido Student are headquartered in London.

“We continue to see strong and compelling opportunities for student housing in Europe as both domestic and international student populations continue to grow and seek high-quality accommodation, which is in short supply across many European cities,” said Tom Jackson, managing director, head of real estate UK, CPP Investments.

“Round Hill Capital, together with the expertise of Nido Student, have been strong partners since the establishment of the joint venture. Furthering our allocation to RHESA will allow us to continue to drive long-term value for CPP contributors and beneficiaries through this thematic investment strategy.”

CPP Investments manages the combined funds of the 21 million contributors and beneficiaries of the Canada Pension Plan. It invests across asset classes and is headquartered in Toronto. As of March 31 the fund totaled about C$415 billion ($325 billion).