CA Ventures’ European student operating platform is being wound down after a rescue plan to spin the business out from its US parent failed.
Around a dozen redundancies are understood to have been made from the financial team of its European business.
The European arm of the company operated 7,000 beds and had approximately 5,000 in its planning pipeline.
The company now is in the process of liquidating its Novel Student Holdings, CA Europe UK Operating Company, CA Europe Management Services businesses via a creditors’ voluntary liquidation.
Seven Novel Student assets that are currently operational will be taken over by Mezzino, an independent student housing property manager owned by CA Venture’s joint venture partner Harrison Street.
Novel Students also operates three assets for Singaporean investor City Developments. It is also in talks with Mezzino to take over the operation of the PBSA assets
James McGrath, founder and business development director for Mezzino told EG: “We can confirm that Mezzino Student Living will assume property management and operations responsibilities at a number of properties previously managed by Novel Student. We are committed to making the transition as smooth and seamless for the operational site staff and residents over the coming weeks.”
The wind down of the entities comes after a plan to pump fresh cash into the business via a funding deal with Bahraini bank GFH Financial Group collapsed. CA started talking with GFH about a cash injection of £80m that would have enabled the company to form a new entity under a different ownership structure in April this year. The talks failed last month.
The European business had also faced mounting difficulties following the collapse of one of its contractors, Henry Construction, earlier this year.
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