Belgian student housing REIT Xior has acquired a redevelopment project in Groningen comprising at least 225 residential units for around €46 mln.
The brownfield scheme will also include offices and around 180 parking spaces, according to Xior. The deal volume represents an expected initial yield of 6.2%.
'With this project we are adding a second residence in Groningen, thereby gaining a firmer foothold in the heart of the fourth largest student city in the Netherlands – one which is characterised by an acute shortage of student housing,' said Christian Teunissen, CEO of Xior.
'This project fits in perfectly with our growth strategy to further expand our portfolio of quality housing in the most prominent student cities in all four of our home markets.'
Xior already has one asset in Groningen, on Oosterhamrikkade, comprising 180 units. The REIT also recently entered the Spanish and Portuguese markets.
The site is being acquired by procuring 100% of the shares in a special purpose vehicle. Renovation work will begin after the permit has been obtained and the building is expected to enter into operation from Q4 2020.