Brookfield Asset Management is taking a controlling stake in European student housing specialist International Campus Group.
The global investment manager said it will 鈥渟ponsor鈥� the German company鈥檚 鈥渇uture growth鈥� but did not disclose the terms of the transaction, which will be subject to anti-trust approval.
International Campus Group founder Rolf Engel will continue to chair the supervisory board and fund management, while Horst Lieder will remain CEO.
鈥ㄢ�↙ieder said: 鈥淏rookfield鈥檚 comprehensive, long-term-oriented commitment shows the great deal of trust placed in the expertise of International Campus and the further growth potential for this segment in Europe.
鈥淲e will use the fresh capital to expand and scale our business model in Western and central Europe, with an emphasis on Germany.
鈥淚nternational Campus will continue to focus on its core products of apartments for students and young professionals.鈥�
Lieder said the company was either operating, developing or planning 11,800 apartments in 33 locations in four countries.
鈥淥ur objective is to penetrate the market further with around 20,000 units in the medium term,鈥� he said.
鈥淭he strategy is growing our existing business and to build up an on-balance sheet real estate portfolio of significant scale. At the same time, we will continue to manage our existing funds.鈥�
Zach Vaughan, managing partner and European real estate head at Brookfield, said: 鈥淭here is unmet demand for purpose-built student and young professional accommodation in Germany and continental Europe.
鈥淎lthough this sector is relatively nascent, International Campus is a market leader and has the operating, sourcing and development capabilities necessary to build a first-class institutional portfolio.鈥�
