The Dutch real estate company Orange Capital has acquired 173 students and apartments.
The company bought the units from a partnership between KKR and Dutch real estate giant Round Hill.
The CEO of Round Hill was confident that the company would be able to meet the region’s growing demand for student housing.
Just when it was thought that companies were holding on to capital because of the impact of the pandemic, Dutch real estate company Orange Capital purchased 173 new apartments in the Netherlands. According to sources, the units, whose exact cost remains a closely guarded secret, were acquired by a partnership between KKR and Round Hill Capital.
The apartments are part of an investment project between KKR and Round Hill that was completed in 2018 between KKR and Round Hill. The two companies jointly acquired a 3.1 hectare site on which a mix of student and residential units will be built in the city of Utrecht. The project was the first student housing transaction between KKR and Round Hill in the Netherlands since their collaboration.
Through its real estate fund Real Estate European Partners, KKR entered into a partnership with Round Hill, which, according to rumors on the street, has now raised the two million from the niche market.
In a statement, the duo stated that the ruinous hospital building in the Oudenrijn, which is part of the project, will be further renovated next to a newly constructed 23-storey building to provide more than 650 beds in specially-built student residences (PBSA) for students. According to one source, the project is expected to be completed by August 2020 at the latest.
“This transaction is the latest stage in our joint venture with Round Hill Capital as we continue to develop high quality real estate in a market with strong economic fundamentals and an undersupply of student and student housing. We see the Netherlands as an important real estate market and will continue to look for opportunities to invest in the development of quality real estate,” said Seb d’Avanzo, Managing Director of KKR.
Similarly, Round Hill Capital’s CEO, Michael Bickford, expressed enthusiasm for the transaction and said the company was pleased to have completed the recently sold units. The real estate company also reaffirmed its commitment to producing well-situated, high quality and affordable units to meet Utrecht’s growing demand for residential and student housing.
Round Hill’s management stated that it will continue to focus on making further investments in residential and student housing in the Netherlands, the US and the UK, in line with the company’s strategy and growth plan.
Orange Capital’s deal comes at a time when most investors are getting cold feet when it comes to major spending, perhaps concerned about the current economic downturn.