CPP Investments launches European PBSA platform

CPP Investments and Nido Living to expand student housing across Europe with a $40m investment

CPP Investments launches European PBSA platform

CPP Investments has taken a significant step in the continental European real estate market by establishing a new platform dedicated to purpose-built student accommodation (PBSA).  

This strategic move is anchored by CPP Investments' acquisition of Round Hill Capital's minority stake in their existing joint venture, the Round Hill European Student Accommodation Partnership, as well as the full acquisition of Nido Living, a foremost PBSA operator and manager in Europe. 

Through these transactions, CPP Investments is channeling up to $40m into this initiative.   

The platform, which will operate under the Nido brand, is set to benefit from CPP Investments' robust real estate investment strategy. It is structured as a wholly owned, independently operated portfolio company with a pan-European reach.

The focus of the company will be on investing in and expanding its current portfolio, which boasts over 5,000 beds, a majority of which have been under Nido's operation since their acquisition.   

“CPP Investments and Nido together are well placed to meet the increasing demand across Europe for high-quality PBSA,” stated Tom Jackson, managing director, head of Real Estate Europe at CPP Investments.  

He highlighted the growing need for premium quality and affordable student housing driven by increased student mobility and higher education participation.  

Jackson also noted the rising student populations in Europe, propelled by labour market upskilling, which adds to the demand for such accommodation. This platform is positioned to “deliver strong risk-adjusted returns for the CPP Fund,” according to Jackson.   

Nido, which was established in 2007 and has garnered recognition as a market leader in Europe, continues to manage high-quality PBSA assets for international investors.  

The company was awarded 'International Operator of the Year' at the 2023 Property Week Student Accommodation Awards and 'Best Private Housing, Europe' by the 2023 Global Student Living Index, underscoring its commitment to excellence.  

The alignment of Nido's focus on creating value for both investors and residents with CPP Investments' sector approach is clear.   

With an initial core target on growth markets in Germany, Italy, and Spain, the platform plans to acquire and develop additional assets. This strategy aims to build a diversified pan-European portfolio, positioning CPP Investments and Nido at the forefront of addressing the expanding PBSA demand in Europe.