CPP Investments takes ownership of €1bn student venture

Canada Pension Plan Investment Board has bought Round Hill Capital’s minority stake in Round Hill European Student Accommodation Partnership for C$40m (£23.4m). As part of the sale, the pension fund giant has taken full ownership of student accommodation provider Nido Living, which was set up in 2007 and acquired by Round Hill Capital in 2012. CPP Investments held the majority stake in the €1bn student platform, set up in 2021. It invested an initial €475m in the venture. Following the acquisition, the Nido platform will be backed by CPP Investments’ real estate investment strategy and will be a wholly owned, but independently operated portfolio company with pan-European exposure. CPP said it would focus “on investing in and expanding” its existing portfolio of more than 5,000 beds across 15 European assets. It has identified Germany, Italy and Spain as key target markets for the platform’s growth. Tom Jackson, managing director, head of real estate Europe at CPP Investments, said: “CPP Investments and Nido together are well-placed to meet the increasing demand across Europe for high-quality PBSA.” “Premium quality and affordable student housing is in high demand due to increased student mobility and growing participation in higher education. In Europe, student populations are increasing as labour markets upskill, resulting in growing pressure for accommodation, positioning this platform well to deliver strong risk-adjusted returns for the CPP fund.”