Brookfield Asset Management has sold its Iberian student housing portfolio to Canada Pension Plan Investment Board鈥檚 (CPP Investments) student accommodation platform Nido Living for 鈧�1.2bn.
Nido Living said it has secured approximately 鈧�700m in debt financing for its acquisition of Livensa Living, with Cr茅dit Agricole CIB acting as the sole bookrunner.
Livensa Living, which has a portfolio of 22 properties, has been scaled by Brookfield since its 2019 acquisition. It has grown from five properties to include over 9,000 beds across 13 university hubs in Madrid, Barcelona, Lisbon and other prime cities.
Nido Living said the acquisition of Livensa 鈥� which adds to its existing Iberian portfolio of 3,000 beds across 10 assets in Madrid, Seville, Valencia, Lisbon and Porto 鈥� would contribute to its goal of owning and operating 25,000 beds across continental Europe by 2031.
Carlo Matta, CEO of Nido Living, said: 鈥淭his acquisition marks a significant step forward for Nido, reflecting the scale of backing for us from our shareholder CPP Investments as well as debt finance provider, and the clarity of our ambition to become the largest and the preferred student accommodation provider in continental Europe.
鈥淲e look forward to taking ownership of the Livensa portfolio and welcoming their talented team into our organisation, as we continue to acquire, develop and operate in key European markets through our unique, vertically-integrated platform.鈥�
Ryan Lee, CFO of Nido Living, said: 鈥淪ecuring approximately 鈧�700m in debt financing to support this transaction reflects the strength of our vertically-integrated platform and the depth of institutional confidence in our long-term strategy.鈥�
Taco van Heusden, chief investment and development officer at Nido Living, said: 鈥淲e hold a strong conviction in the fundamentals of the European purpose-built student accommodation (PBSA) market and have confidence in Nido鈥檚 fully integrated model. Livensa is a highly strategic fit 鈥� offering immediate scale and access to dynamic university cities.
鈥淲e look forward to leveraging our unique platform to drive long-term value by delivering exceptional living experiences to our residents.鈥�
Brad Hyler, co-president of Brookfield鈥檚 real estate group, said: 鈥淲e are pleased to have supported Livensa鈥檚 transformation into the leading PBSA provider in Southern Europe, with over 9,000 high-quality beds. We were an early investor identifying the opportunity to institutionalise the PBSA sector over the last decade.
鈥淲e expect further growth and institutionalisation of the sector over the coming years, due to favourable demand drivers across Europe.鈥�
Alberto Nin, head of Southern Europe in Brookfield鈥檚 real estate group, said: 鈥淲e want to thank the Livensa team for their partnership and commitment over the past several years.
鈥淏uilding on our significant experience in Southern Europe, we will continue to invest in the region where we see substantial opportunity to use our operating expertise to support the growth of businesses, with continued focus on sectors such as hospitality, alternative living and logistics.鈥�
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