Robin Ubaghs

Here’s the thinking behind Prop.com’s latest €24M acquisition - a 315-unit student housing asset in the heart of Western Germany: Germany’s student housing market is structurally undersupplied - especially in Tier, whose university is part of the University of the Greater Region. This cross-border alliance of seven universities with over 140,000 students fosters academic mobility across institutions. Apart from the limited public offering provided by the student union, there is only one comparable private provider of student apartments; however, they primarily offer unfurnished units. Our product is therefore unique in the market, located directly on the university campuses. The main value driver of this investment is the replacement of the current operator (whose lease expires in September this year) with a professional operator offering a modern, target-group-oriented product. This includes professional furnishing, communal areas such as a learning lounge, and upgrades to the outdoor spaces, including a barbecue area and a padel court. These improvements are expected to significantly increase rental income. Additionally, there is potential to create 42 additional units by repurposing currently unused community areas, thereby increasing the income potential of the asset. The asset is planned to undergo a comprehensive energy-efficient refurbishment, including heat pumps, solar PV, and improvements to the building envelope to meet current ESG requirements of institutional investors. Therefore, subsidised KfW loans with repayment grants can be utilised, further enhancing the exit value of the property.