As revealed by Business Immo on December 9, GSA and Nuveen Real Estate will acquire Gecina's student residence platform, YouFirst Campus, at the end of a competitive sales process launched in 2024. The group headed by Beñat Ortega made the announcement today via a press release.
The joint venture between Nuveen Real Estate, on behalf of its parent company TIAA, and GSA has signed a firm purchase agreement based on an implicit valuation of €567 million including transfer taxes (€539 million excluding transfer taxes) for a portfolio of 18 assets in operation (nearly 3,300 beds) and four additional assets under development (nearly 400 beds), which will be transferred on delivery in 2025 (€30 million of Capex still to be disbursed at the end of 2023).
The JV had entered the market exclusively in the summer - it had overtaken Brookfield AM and Greystar - before pulling back in September, according to a source familiar with the matter.
The deal is expected to be finalized in the first half of 2025, "subject to the lifting of the usual conditions precedent", says Gecina, which operates a €3.5 billion residential portfolio heavily concentrated in Paris.
" The crystallized value will enable us to further consolidate our balance sheet, finance our value-creating tertiary and residential pipeline, and give us additional leeway to finance opportunistic acquisitions while respecting our investment discipline", says Beñat Ortega.
This prime student housing portfolio represents 2.5% of its overall portfolio and 11.9% of its residential portfolio, always located in central areas or close to the main French university campuses.
" Gecina, drawing on its expertise and platform, will support the purchaser and its operating partner Yugo in the operation of the portfolio during the transition period until the end of 2025", it is specified in the same press release.
" The French market offers interesting opportunities, combining a large student base, fed by the country's leading universities, and low levels of supply of suitable student accommodation," says James Hunt, Global Head of Real Estate at GSA. The acquisition of Gecina's YouFirst Campus portfolio is an excellent entry point into the region, bringing well-located premium assets that will benefit from our expertise and significant synergies bringing real value from day one."