The Canada Pension Plan Investment Board has established a new real estate investment and operating platform focused on purpose-built student accommodation (PBSA) in continental Europe.

Toronto-based CPPIB is doing so by acquiring Round Hill Capital’s minority stake in their their joint-venture, Round Hill European Student Accommodation Partnership, and via the full acquisition of London-based Nido Living, a European PBSA operator and manager. 

CPPIB is investing up to $40 million in the platform through the combined transactions, the pension fund manager said in a news release.

The platform will operate as Nido and be backed by CPPIB’s real estate investment strategy and will be a wholly owned, but independently operated portfolio company with pan-European exposure.. Nido will be focused on investing in and expanding the existing CPPIB-owned portfolio of about 5,000 beds, most of which have been operated by Nido since they were acquired.

“CPP Investments and Nido together are well placed to meet the increasing demand across Europe for high-quality PBSA,” said Tom Jackson, head of CPPIB’s European real estate business.

Nido will also continue to manage high-quality PBSA assets for other international investors. 

CPPIB ranks among the world’s largest institutional investors. Redwood is a publicly traded finance company that specializes in housing credit.

Photo: Nido Living