CA Ventures is expanding its operations with plans to invest $500 million over the next five years in the European housing market, specifically across the purpose-built student housing and multifamily apartment sectors.
The Chicago-based firm is currently developing two student housing projects in Poland—700 beds in Krakow and 400 beds in Warsaw—and is in active negotiations to acquire properties and development sites in the U.K., the Netherlands, Germany, Spain, Ireland, and the Czech Republic, the company says.
“Across the geographically diverse markets in which we do business, student preferences are actually quite similar despite cultural nuances,” said JJ Smith, president of CA Student Living, CA Ventures' student housing entity, in a statement. “Today’s students seek modern designs and conveniences such as fully furnished suites, private bedrooms and bathrooms, ample closet storage, and a robust combination of well-appointed common spaces for social and academic pursuits. On-site management ties it all together with hands-on programming and a keen eye for safety protocols.”
According to Smith, Poland is a particularly attractive European market, with strong enrollment growth from locals as well as students from other countries, due to its high-quality, cross-discipline university programs offered in English. CA estimates that while nearly 50% of the 2 million university students in Poland don't live with their parents, there are fewer than 200,000 student housing beds currently available, much of it functionally obsolete.
“Broadly across Europe, less than a third of all students currently live in purpose-built student housing, so we see tremendous runway,” continued Smith. “We've spent a significant amount of time researching specific markets, identifying landowners, and pinpointing co-development partners looking to parlay their local expertise to a platform that de-risks their position and provides capital alongside design, development, construction management, leasing, and operations expertise in the student accommodations sector. Already, we've enjoyed great success, and this is just the beginning. Our access to capital and ability to handle all aspects of development will allow us to move quickly to secure the best opportunities.”
CA is best known for its student housing operations, but its $6.7 billion portfolio also includes traditional multifamily and senior living communities throughout the United States.
Over the past eight years, CA Student Living has amassed a $3 billion portfolio serving over 40 universities in the U.S., Canada, Latin America, and, now, Europe. During that same period, CA has successfully sold over $2.5 billion worth of student accommodation assets. According to CA, the firm aims to deliver highly amenitized, best-in-class, near-campus properties in leading university markets, both nationally and internationally, where enrollments have increased and the housing supply hasn't kept pace.
“CA has been an innovator in student housing in the Americas for over a decade, and, as a team, we’ve been evaluating the European housing market closely for several years,” said Tom Scott, CEO of CA Ventures, in a statement. “We believe the market for purpose-built student housing in Europe is poised to benefit from growing university enrollments, increasing consumer adoption, and a very limited supply of amenitized housing. … our capabilities as a vertically integrated developer and operator uniquely position us to bring our successful model to Europe, capitalizing on the scale and depth of these markets.”
