GSA Makes €110 Million Investment in Mainland Europe

Press Release - 14th July 2016

Following moves into Australia, China, Ireland, Japan, UAE and the UK, GSA announces first German student accommodation portfolio acquisition

GSA, the international student accommodation specialist set up by Nicholas Porter in 2008, today announced it's first entry into the German market with the acquisition of four existing properties and the potential for further pipeline projects, in total comprising some 1,500 beds.

With an investment of over €110 million, GSA has acquired the existing residences, known as the Headquarter portfolio, from Devario Invest, the family office of Torsten Toeller, founder and chairman of Fressnapf.

The portfolio had been built and operated by Devario since 2012 and features properties across four of the country’s largest university cities; Münster, Dresden Darmstadt and Frankfurt. The residences are in prime central locations, close to the leading universities in those cities.

The move marks the start of a five-year strategy by GSA to build a 10,000-bed portfolio in Germany under its Uninest brand, and exploit an under-supplied market for purpose-built accommodation in Europe’s largest economy.

Germany is one of Europe’s most popular destinations for foreign students but just 10 – 12% of the student population lives in purpose-built accommodation. The supply-demand imbalance has delivered strong occupancies and high rental yields across the Headquarter portfolio.

Tim Mitchell, CEO of GSA Europe said: “Our research team has carefully evaluated the major university destinations in Europe and we regard Germany as one of Europe’s top educational markets and an ideal platform for growth across the Continent.”

Frank Pfirsching, Managing Director, Germany said: “This is a great time to introduce the Uninest brand to the German market. All the evidence points to rising student numbers but there is a critical under-supply of purpose-built stock. These are already high-quality assets but we are confident of improving the investment proposition through Uninest.”

As a global investor, developer and operator of purpose-built student communities, GSA is on an exciting growth trajectory across Europe and key student accommodation markets globally. It continues to build its pipeline in Ireland and the UK.

GSA is also the only student accommodation provider to go global, it has a global operating platform to service the growing demand of globally mobile higher education students. It has properties open in Dubai, Dublin, the UK, Japan, China and Australia. The German acquisition is part of a wider expansion into northern Europe by Nicholas Porter’s GSA team, who has a track record over 25 years in the student accommodation sector.

The re-branding of the Headquarter portfolio to GSA’s student brand Uninest will involve a series of improvements – including refurbishments, cutting edge connectivity and community spaces – that will add value to both student residents and investors.

Osborne Clarke and Warth & Klein Grant Thornton represented GSA in the transaction while PricewaterhouseCoopers and Catella Property advised the seller.

Ends

For further information, contact; Tabitha.aldrich-Smith@gsa-gp.com

Mobile: +44 7971 919610

Notes to editors 

The drivers for growth in Germany’s higher education market

• GSA’s entry to the German market comes at a time when the Government is encouraging investment in higher education to stimulate demand among foreign students.
• There are currently some 2.8 million full-time students studying in Germany’s higher education institutions, with 4% of students from outside Germany.
• Germany was the fourth largest recipient of international students in 2015, according to UNESCO.
• Munich and Berlin feature in the top 12 of the global QS Best Student Cities 2016 Rankings.
• Nine German universities feature in the top 150 of the QS World University Rankings 2015/16, with 18 in the top 270 and 36 in the top 500.
• In the year to July 2014, there were 319,283 enrolments by full-fee paying international students in Germany on a student visa, representing a 6% increase on the previous year.
• Germany’s higher education sector has introduced internationally comparable courses as well as an increasingly common use of English as language of instruction.
• Unlike the US and UK, tuition fees are low in Germany while living expenses are generally lower than in other European countries.
• According to two studies, only 10 to 12% of students in Germany live in student accommodation.