AXA Investment Managers – Real Assets, a global leader in real asset investments and the leading(1) real estate portfolio and asset manager in Europe, announces that it has signed an agreement to acquire, on behalf of clients, Groupe Kley ,a fully integrated student housing and co-living operator, and its portfolio of student residences across France, from funds managed by Oaktree Capital Management, L.P.
AXA IM – Real Assets will become the long-term partner of Kley and will support its management team in its strategy to further expand the company.
Kley was established in 2014 and is one of the leading operators of purpose-built student housing and co-living properties in France. Its portfolio comprises c. 2,500 beds across seven operational residences, plus a secured pipeline of c. 3,300 beds across 14 residences, many of which are currently under construction. All assets are located in either regional university cities (Angers, Toulouse, Rennes, Marseille and Caen) or Paris, Île-de-France, in close proximity to student campuses or city centres where demand is greatest. In addition to the current and secured future portfolio, this acquisition also presents AXA IM – Real Assets with access to Kley’s ongoing pipeline of student housing and co-living opportunities.
The French student housing market is characterised by a lack of purpose-built student accommodation (PBSA) despite having one of Europe’s largest, and most rapidly growing, student populations, with 10% growth seen over the last decade(2). Similarly, with a number of globally leading educational institutions, the country is proving increasingly attractive to international students, with this contingent representing 13% of enrolments last year(3). Furthermore, the quality of available PBSA is generally low, making Kley’s modern, newly built and well managed portfolio stand out as unique in the French student housing landscape.
This acquisition sees AXA IM – Real Assets build on its extensive global student housing expertise comprising a portfolio of over 15,000 beds. It is in line with AXA IM – Real Assets’ strategy of investing in alternative asset classes and platforms with the capacity to grow and comes shortly after its entry to the Australian student accommodation market, where it has partnered with leading student housing operator and manager, Scape, as well as its acquisition of Spain’s largest student accommodation platform, Resa, in 2017.
The transaction is expected to close by the end of the year.
(1 Source: INREV/ANREV Fund Manager Survey – May 2018 – in terms of assets under management
2 Source: MENESR, UNESCO
3 Source: MENESR)
Source : AXA Investment Managers – Real Assets