Project developer – CDS Holding – with the support of CDS Living has sold to AXA IM Alts, in a forward purchase deal, the under-construction 400-unit Student Residence in the Novoli district of Florence. The purchase price is around €40m.
The general contractor, CDS Costruzioni SpA has already started construction work. The Residence is set to open for the winter semester 2023. The UK-based student housing specialist – CRM Students – has been appointed as property manager.
The Student Residence Novoli site has a prominent location adjacent to the new university campus Novoli – a vibrant urban environment with daily amenity needs and a large public park of 10 hectares. The nearby tram takes students to centro storico in 10 minutes.
The six floor Student Residence will deliver a mix of fully equipped modern-style single studios, ranging in size, as well as studios for the less-abled. State-of-the-art amenities including reception, lounge areas, communal kitchens, gym, cinema, study and games rooms. There will also be a fully landscaped courtyard garden with outdoor seating and a spacious rooftop terrace.
Florence is a key Italian hub for higher education with an ever-growing domestic and international student population of c. 62.000 students, of which c. 23.400 are mobile, seeking outstanding education and good quality student living. However, Florence is also facing a dramatic undersupply of purpose-built student accommodation (PBSA) – with only four beds available for 100 students. The current stock is mainly in worn condition, doesn’t meet the requirements of today’s students, and is predominantly only accessible for students with low family incomes or scholarships.
Florence, like other Italian university cities offers very strong market fundamentals in the PBSA sector with high occupancy rates and attractive rents. The new Student Residence Novoli with its prominent location and high amenities provision will match the severe demand of young people to live, work and play in a modern and international environment.