In the 18 months since its launch, CESFH II has acquired seven properties comprising nearly 2,000 residential units in five European countries. The Fund offers investors a projected internal rate of return (IRR) of more than 5 percent per year and a direct income of more than 3.5 percent. CESHF II succeeds CRIM’s first European Student Housing Fund, which has generated an IRR of more than 6.5 percent per annum since its launch in 2013 until Q1 2021.

Michael Keune, Managing Director at CRIM, said:

“At the beginning of the Covid-19 pandemic we expected student housing values to decline slightly, as did the rest of the market, but this did not happen despite reduced liquidity and lower levels of transactions. Even though most universities are closed at present with online seminars dominating educational programmes, rent collection remains quite high. This is true across all markets, with the exception of the UK which is highly dependent upon international students and has therefore been harder hit by travel restrictions. The resilience of the student accommodation market is illustrated by the fact that all completed assets in the CESHFII fund, for example in Mannheim, Linz, and the new acquisition in Copenhagen, are fully let.” 

The 10,226 sqm Telegrafkollegiet is located in Ballerup, Greater Copenhagen, and was originally built in 1971 for commercial purposes. It was comprehensively renovated in 2020 and converted into state-of-the-art student accommodation, designed by the architects 'Over Byen’. The student residence comprises 262 apartments, ranging from 36-54 sqm and each with its own toilet, shower and private kitchen. The basement includes communal facilities such as a laundry and drying rooms, communal kitchens and exercise rooms. The property also has 40 parking units and is linked to district heating with a top-end energy performance certificate.

Alexander Brüning, Fund Manager at CRIM, said:

“This new asset is perfectly aligned with our affordable rent strategy. In Denmark, state grants are available to all full-time Danish students participating in a recognised educational programme, and whose income does not exceed a defined amount.  Students living independently receive a monthly grant of €840 and in 2019 around 92% of Bachelor undergraduates and 77% of Master students received state payments.” 

CBRE advised the seller, the Gefion Group, a specialist residential developer based in Copenhagen.

Thylander Gruppen advised CRIM on the transaction. Frankfurt-based Institutional Investment Partners GmbH (2IP) provides the AIFM platform for CESHF II.