Round Hill Capital sells Nido Living to CPP Investments

The transaction represents a successful disposal for Round Hill Capital, having owned Nido Living for 12 years.

Reception at Nido Aravaca. Nido Living has been sold by Round Hill Capital to CPP Investments | PBSA News
Reception at Nido Aravaca. Nido Living has been sold by Round Hill Capital to CPP Investments.

Global specialist residential real estate investor, developer and manager – Round Hill Capital – has sold its Nido Living business to Canada Pension Plan Investment Board (CPP Investments).

CPP Investments is establishing a new real estate investment and operating platform focused on purpose-built student accommodation (PBSA) in continental Europe through this acquisition.

As part of the transaction, Round Hill Capital is also selling its stake in the existing student accommodation joint venture between the two companies, which comprises over 5,000 beds across 15 European assets.

Operating as Nido, the platform will be backed by CPP Investments’ real estate investment strategy and will be a wholly owned, but independently operated portfolio company with pan-European exposure.

“CPP Investments and Nido together are well placed to meet the increasing demand across Europe for high-quality PBSA. Premium quality and affordable student housing is in high demand due to increased student mobility and growing participation in higher education. In Europe, student populations are increasing as labour markets upskill, resulting in growing pressure for accommodation, positioning this platform well to deliver strong risk-adjusted returns for the CPP Fund.”

Tom Jackson, Managing Director, Head of Real Estate Europe, CPP Investments

Moving forward, the company will be focused on investing in and expanding the existing CPP Investments owned portfolio of over 5,000 beds, the majority of which has been operated by Nido since acquisition.

In addition to managing the existing CPP Investments portfolio, Nido will continue to manage high-quality PBSA assets for other international investors. It will continue to provide a best-in-class service to customers during this transition. Nido’s focus on driving value for both investors and residents fits well with CPP Investments’ approach to the sector. 

Having acquired Nido Living in 2012, Round Hill Capital has successfully grown the business into one of Europe’s leading providers of purpose-built student accommodation (PBSA), managing and developing over 18,000 beds during that time.

“Since acquiring Nido in 2012, the business has gone from strength to strength, starting from three assets in the UK to managing over 18,000 student beds across the UK and Europe in this period, as well as diversifying into new territories.

“This transaction is testament to the value we have built in this award-winning business over the past 12 years and represents a successful conclusion of this investment.

“As an investment manager, Round Hill Capital continues to see significant value in the student and other residential sectors, which remain integral to our investment strategy going forward.”

Michael Bickford, CEO and Founder, Round Hill Capital

Nido has also won multiple awards including from the Global Student Living Index, PIEoneer, Property Week and The Class Foundation for its leading student housing operations.