A joint venture between US developer-investor Hines and independent real estate investment management company Blue Noble has acquired a development site near Bocconi University to build a 650-bed student residence.
Financial details were not disclosed.
‘The student housing market continues to offer an attractive investment proposition and we look forward to growing our portfolio across key markets in Europe,’ commented Lars Huber, CEO of Hines Europe.
Mario Abbadessa, Italy country head for Hines, added: ‘We see a wide gap between supply and demand in Italy, in terms of available accommodation and particularly in terms of its quality, sustainability and flexibility.’
‘Our goal is to provide innovative solutions to the different needs of students, foreigners and young professionals. Over the next two years, we aim to invest €500 mln in the main Italian university cities,’ she said.
The construction will begin in late 2018 and its completion is expected by the end of 2021.
The project, located at the corner of Via Ripamonti and Viale Isonzo, will also provide common areas, study rooms, library, cinema and gym.
This is the joint venture’s second deal in the Italian student accommodation market. Earlier this year Hines and Blue Noble bought a €35 mln site close to Bocconi University to develop a 600-bed student housing for a further cost of €50 mln.
‘As investor and portfolio manager, Blue Noble is excited about the prospect of matching a compelling investment proposition with the ability to make a meaningful contribution to the provision of short-term accommodation in the city,’ Paul Forshaw, CEO of Blue Noble, concluded.