Xior Student Housing concluded an agreement with Basecamp Group, European Student Housing Fund I (ESHF I) and European Student Housing Fund II (ESHF II), the subject of which is the purchase of private portfolios for EUR 939 million halls of residence (PBSA) managed by Basecamp, the company said. It consists of 5,341 rooms in 11 newly built properties (8 in operation and 3 under construction). All facilities are located in Germany, Poland, Denmark and Sweden.
As a result, Xior will extend its offer by 5,341 rooms in 9 university cities, and the total fair value of the portfolio will increase to EUR 3.7 billion (32%), it said.
“Since Xior started operations in 2007, we have been constantly developing and making our services even more professional. We have quickly transformed from a small family business into a truly professional player in the private student residence market. Thanks to the landmark acquisition of Basecamp, we will continue to grow. three new countries, but we also gain 11 state-of-the-art, sustainable facilities that fit perfectly into our current portfolio and vision for the future, and will strengthen our position as a market leader in continental Europe. a higher level,” said Xior CEO Christian Teunissen.
The purchase of the facilities will be financed with approximately EUR 252 million in equity capital, approximately EUR 85 million in current debt and approximately EUR 301 million in new financing. The private placement of ESHF I and ESHF II funds will be organized on an arm’s length basis (as most of their shareholders do not have the right to hold shares in a listed company), upon closing of the transaction, which will allow ESHF I and ESHF II to redeem part of their stake. The costs of completing the three investments under implementation will amount to approximately EUR 121 million.
“The Polish student accommodation market has a strong growth potential and is an attractive market that is still at an early stage of development. It can be compared to the student housing market in Western Europe in 2013–2014. With the growing number of foreign students and far too low supply. Given that only 1 in 10 students can count on accommodation and current student facilities are largely outdated and do not meet the needs of current students, there is a clear, unmet demand for high-quality student accommodation, “we read on.
The transaction was divided into three phases:
ESHF I and ESHF II will contribute a portfolio of assets (except Lyngby Residential and Aachen BlueGate) to Xior in exchange for the issue of new Xior shares. The private placement of ESHF I and ESHF II funds will be organized on an arm’s length basis, after the closing of the transaction, which will enable ESHF I and ESHF II to redeem part of their stake. In addition, Xior will acquire shares in Danish companies (including Lyngby Residential indirectly) from Basecamp through the direct sale of shares for cash. The first stage is to be closed on August 30, 2022.
Basecamp shareholders will bring Basecamp to Xior by issuing new Xior shares as part of a put / call option exercise foreseen in March 2023. The newly issued shares will be subject to a 6-month closed period for Basecamp shareholders.
ESHF II will contribute Aachen BlueGate to Xior in exchange for the issue of new Xior shares as part of the exercise of put / call options, expected in September 2023.
Source: Xior and ISBnews
