Proprium Capital Partners is investing USD 100 million in Italy's student accommodation sector, developing two projects in Milan and Padua to house over 1,600 students. This move addresses the growing demand for student housing in Italy, where current supply falls short. Partnering with Collegiate AC Europe, Proprium's Southern European PBSA platform will expand to over 3,000 beds valued at more than USD 700 million across Italy and Spain. The investment aligns with a broader trend of increasing interest in the PBSA sector throughout Europe. Proprium, with over USD 4 billion in assets under management, plans further expansion with a USD 1 billion pipeline of PBSA opportunities in southern European university cities facing housing shortages.
Proprium Capital Partners, a real estate private equity firm, has announced plans to invest USD 100 million in Italy's rapidly growing student accommodation sector. The investment will focus on acquiring and developing two purpose-built student accommodation (PBSA) projects in the northern cities of Milan and Padua. These facilities are designed to house over 1,600 students in prime locations and will feature amenities such as gyms, spas, outdoor sports facilities, cinemas, and group study spaces.
The investment comes at a time when Italy's student housing market is experiencing significant growth. According to a recent report by Scenari Immobiliari and Re.Uni, the current PBSA in Italy can accommodate more than 85,000 students, with an expected increase of about 28,000 beds over the next three years. The report highlights a substantial gap between supply and growing demand for university housing in Italy, presenting a great opportunity for real estate investors.
Proprium Capital Partners, which originated from Morgan Stanley Real Estate Special Situations team, has been investing in real estate operating companies since 1996 and manages over USD 4 billion in assets. Javier Perez-Lecumberri, a partner at Proprium, expressed enthusiasm about the new projects, stating that they will expand the firm's presence in Milan and mark its entry into the Padua market. The investment is being made in partnership with Collegiate AC Europe through their Southern European PBSA platform. With the addition of these two new developments, the platform's portfolio will expand to over 3,000 student beds across Italy and Spain, with a total value exceeding USD 700 million.
Perez-Lecumberri emphasised the firm's commitment to delivering high-quality student housing across Europe and revealed plans for further expansion. He mentioned an identified USD 1 billion pipeline of attractive PBSA investment opportunities, with aims to establish a substantial, well-managed platform in partnership with Collegiate in select university cities and towns across southern Europe, focusing on areas with chronic supply shortages.
Collegiate, a PBSA provider, first entered the Italian market in June 2019 through its collaboration with Proprium. As part of their joint venture, Collegiate has secured an investment from Proprium to develop a pipeline of student accommodation schemes. This investment aligns with the broader trend of growing interest in the PBSA sector across Europe, as investors recognise the potential in meeting the increasing demand for quality student housing in key university cities.
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