GIC and Dutch pension investor APG to acquire ‘substantial stake’ in The Student Hotel

Euro coinsPhoto by Leslie Shaffer

Singapore sovereign wealth fund GIC and Dutch pension investment company APG have entered an agreement to acquire a “substantial stake” in The Student Hotel from Aermont Capital, according to a press release on GIC’s website Tuesday.

The deal values The Student Hotel (TSH) at EUR2.1 billion, the release said.

Under the deal, APG and TSH founder Charlie MacGregor will increase their stake in TSH, with GIC entering as a new investor, the release said. APG first invested in TSH in 2015, while Aermont Capital entered in 2014, the release said, adding MacGregor opened the first TSH property in 2012.

TSH operates a “hybrid hospitality” model of combining student accommodation, hotel rooms, co-working and meeting spaces as well as food and beverage outlets, the release said.

The investments from APG and GIC are earmarked for expanding TSH’s presence in European cities to 50 hotels from 25 currently, with 15 in operation and three opening this year, the release said.

“During the pandemic the hybrid model proved resilient as TSH was able to substantially increase room allocation towards students when leisure and corporate travel dramatically reduced, thereby achieving strong occupancy rates and remaining cash-positive,” the release said. “With the hotel and travel market rebounding strongly, TSH is set to benefit from a strong summer while its student bookings for the 22/23 academic year already stand at record levels.”

The transaction is subject to regulatory approvals, the release said.

APG is a direct subsidiary of Stichting Pensioenfonds ABP, which is the Netherland’s largest pension fund.