Global law firm Clifford Chance has advised Nuveen Real Estate, one of the largest investment managers in the world, on its joint venture with Global Student Accommodation (GSA) for the €540 million acquisition of Gecina’s YouFirst Campus portfolio, a portfolio of Purpose-Built Student Accommodation (PBSA) in France. The transaction marks both Nuveen and GSA’s entry into the French PBSA market and compliments Nuveen’s strategy to invest in PBSA in Continental Europe.
The acquisition will provide immediate scale and market presence across France’s leading educational cities and expand both companies’ pan-European PBSA footprint. The portfolio includes 18 operational properties comprising 3,600 beds located close to leading universities in Paris, Bordeaux, Lille, Lyon and Marseille, as well as four additional development projects in Paris which will add another 400 beds upon completion. Nuveen will act as investment advisor to the JV, with GSA as the asset manager. The properties will be operated by GSA’s global partner Yugo, adding scope for operational synergies.
Real Estate Partner Ian Painter commented: “Student accommodation continues to be a globally resilient and attractive asset class, and the French market is no exception given its appeal to both domestic and foreign students. We were delighted to advise Nuveen Real Estate on this strategically significant joint venture to enable their entry into the French PBSA market and to continue to support their investment strategy. We have a long track record of advising our global clients in relation to accessing new markets or asset classes, particularly on a cross-border basis. This is an example of our One Europe offering in action as we mobilised a pan-European multidisciplinary team to work hand in hand with Nuveen and GSA to bring this deal to fruition.“
Jasper Gilbey, Head of Housing and Alternatives at Nuveen Real Estate, said: “Purpose-built student accommodation in Continental Europe continues to be one of Nuveen’s highest conviction strategies – underpinned by low provision rates, a growing youth population and an increase in both domestic and international enrolment numbers. The French market encapsulates all these fundamentals but has historically been a challenging market to enter given the dominance of domestic capital. “In this context, the unique opportunity to acquire a scaled platform like the YouFirst Campus portfolio is very compelling – a stabilised portfolio with a strong operational track record, identified development pipeline and heavy weighting towards the under-supplied Paris market. We look forward to partnering with sector specialist GSA to acquire the portfolio and collectively drive long-term value through active asset management.”
Elly Baker, Head of Legal, Investments Nuveen Real Estate, said: “This marks a further step forward for Nuveen in expanding its European student housing strategy. Thrilled to be part of the incredible team concluding the acquisition in conjunction with the establishment of the strategic partnership with GSA. Thank you to the Clifford Chance team led by Ian Painter – epic delivery and seamless collaboration across multiple teams, advisors and jurisdictions on a complex project.”
The Clifford Chance pan-European multidisciplinary team was led by Real Estate Partner Ian Painter with support from Senior Associate Holly Porter and Associate Daniel Stamford and input from Nuveen Relationship Partner Nicholas Rees. In Luxembourg, Partner Saskia Myners, supported by Counsel Simone Schmitt, Senior Associate Arvine Nooralian and Trainee Fanny Ceballosová, provided local law advice.
Partners Laura Underhill and Ed Page supported by Associate Nicola Griffin, Senior Associate Paul Harrington and Director of VAT Simon Corzberg advisied on the tax aspects of the transaction with input from Partner Geoffrey Scardoni, Counsel Maxime Budzin and Senior Associate Simon Paran on Luxembourg tax and Partner Alexander Lagarrigue and Associate Pascale Ekue on French tax. Funds advice was provided by Partner Alexander Chester and Counsel Benjamin Harding. Partner Don McCombie supported by Associate Laura Hartley advised on intellectual property matters.
