Xior Expands Dutch Student Property Holdings

New reports suggest that Xior Student Housing, a property investment firm, has recently expanded its

Dutch student property holdings, to capitalise on a booming market. Frank Vogel reviews.

Why is Dutch student property attractive?

The Dutch student housing market is attractive to investors because it possesses a favourable

supply/demand ratio. Data from estate agent Savills suggests that the number of full time students

studying in The Netherlands will rise to 695,000 by 2025. Just like the rest of continental Europe, The

Netherlands lacks a strong supply of student housing, creating new opportunities for investors.

The Bonnefanten complex

Increasingly, prominent market players are turning their attention to The Netherlands’ student real

estate sector. Greystar, a US student housing developer and operator, is currently moving to establish

itself within the Dutch student property industry. Taking advantage of Amsterdam’s strong student

housing market, in October 2015 the firm purchased the 939-bed Campus Diemen in the national capital

for around €80m.

Expanding Dutch property holdings

Greystar will have to compete with regional players such as Xior Student Housing to operate effectively

within the Dutch student property market. Xior is a Belgian firm which specialises in developing and

operating student real estate and already has a presence in The Netherlands. Property portal Europe

Real Estate reports that Xior has now decided to expand its Dutch holdings.

Xior has purchased two new student buildings in The Hague and Delft. With predicted rents equalling

€1.357m, the acquisition is worth around €24m and will complete by mid-2017. The deal will include

100% shares in the firms which currently own the buildings and a guarantee for the lease of 100% of

the 190 units included in the properties on closing. Xior will construct new units and redevelop the

existing structures.

The Annadal complex in Maastricht

Consolidating Xior’s presence

The property in Delft, a town north of Rotterdam, is based at 1 – 15 Antonia Veerstraat. Part construction

and part redevelopment, it will comprise 118 units. The real estate in The Hague is based on

Waldorpstraat. It resembles a single structure but is actually two distinct buildings with 72 studio

apartments.

Commenting on the deal, Xior Student Housing CEO Christian Teunissen said: “With this acquisition

we will be able to consolidate our presence in the existing markets of The Hague further, and we will

also expand to a large university town such as Delft. It strengthens Xior's position in the Netherlands

as part of the planned growth strategy.”

Frank Vogel’s commentary

"Based on our own investments this year in Maastricht in the Annadal Campus and the Bonnefanten

Complex we have the same view as Xior. We differ however in approach where Xior purchases turn-

key projects we invest in working projects where we can make the difference in filling the buildings and

expanding the capacity of the buildings we buy. Exit margins as calculated above are interesting to

consider."

Who Is Frank Vogel?

Frank Vogel is a financial asset manager and real estate investor based in Amsterdam, The

Netherlands. He is also a philanthropist and founder of MF Foundation, which strives to contribute to a

better world through a range of financial projects and other initiatives.