FRANKFURT, Dec 21 (Reuters) - Germany’s International Campus, insurer Allianz and a European investor represented by U.S. real estate company CBRE will launch a fund to finance pan-European student housing, in a sign of continued growth in the yield-promising property sector.
International Campus, which operates around 7,200 student housing apartments in Germany and the Netherlands, said in a statement on Wednesday that the initial portfolio comprised four fully rented buildings, as well as four ongoing projects.
The investors declined to disclose the portfolio’s purchase price, International Campus said, adding that the new fund called “THE FIZZ Student Housing Fund S.C.S.” was preparing further acquisitions.
The Luxemburg-registered fund has a 70 percent equity ratio and will run for an initial duration of 10 years, the statement said.
Over the last year, a growing number of global investors have tapped into Germany’s student housing market, tempted by yields not available elsewhere and driven by the country’s popularity among international students and a lack of small apartments.
$1 = 0.9612 euros Reporting by Tina Bellon; Editing by Maria Sheahan