Pan-European investment manager Corestate Capital and US private equity firm Bain have launched a strategic partnership for micro living assets in Poland.
Under the agreement, the duo will co-invest in properties and convert them into student housing, with an initial capability to develop assets with a gross asset value of up to €500 mln.
The deal also includes asset and property management contracts.
Lars Schnidrig, CEO of Corestate Capital said: 'Our partnership with Bain Capital Credit underscores our ability to offer convincing fully integrated solutions with our one-stop-shop approach.
'Crucial for Bain Capital was our ability to act as a co-investor with aligned interest. With Bain Capital we have found a partner with strong real estate experience across Europe with whom we will continue our successful growth story in the European micro living sector.'
'We are pleased to have partnered with Corestate on our first student accommodation venture in Poland, where there is significant potential to create value and add to our substantial European real estate portfolio,' said Fabio Longo, a managing director and head of Bain Capital Credit’s European non-performing loan & real estate business.
'The undersupply of quality student housing alongside the growth in international student numbers and strong investor appetite for such assets creates highly favourable investment conditions,' Longo added.
The first project developments are planned at major university locations in Poland. Corestate said that it had already acquired the first suitable properties and is currently examining further acquisitions.