Develia has signed a Letter of Intent with Innova Capital and Solida Capital to realize a portfolio of student housing investments through the dedicated investment fund. Develia’s participation in the project, which will result in a total of several buildings with 6,000 beds, will represent up to 10% of the capital commitment at the fund level. Develia will participate as an investor and developer in the realization of three to five of them. Ultimately, the fund may reach the value of invested equity capital approaching EUR 150 million.
With the potential collaboration with Innova Capital and Solida Capital, Develia will realize three to five student houses. These houses will be built on properties originating from Develia’s land bank or acquired by the developer during the collaboration period. In addition to its role as a partner in the fund, Develia will be one of the entities managing the project implementation.
“The development in the student housing sector is a significant step in the implementation of our business strategy announced in April this year. We have partnered with renowned private equity funds Innova Capital and Solida Capital, with whom we aim to develop this promising sector. Through our presence in the student dormitory market, we will be able to fully utilize our land acquisition potential and broaden our competencies in the broadly understood living sector,” said Andrzej Oślizło, Develia’s President.
The specific terms of the collaboration will be defined by the partners in the investment agreement and fund agreement, which may be concluded within the next two quarters. The partners intend for the realization of the first students dormitories to begin as early as in 2025.
This agreement marks another step for Develia in the development within the PBSA (Purpose Built Student Accommodation) segment. Earlier this year, the company signed a joint venture agreement with the CEE Student Housing Fund, managed by I Asset Management – a company specializing in investment management – and supported by Hanner. As part of this agreement, a student housing facility with over 300 rooms will be built in Wrocław. Develia will act as the developer in the project, responsible for acquiring the land, overseeing construction, and fitting out the investment. After the completion of construction, the partner will purchase Develia’s shares in the project and will handle the commercialization and management of the facility.
Source: https://managerplus.pl/develia-podpisala-list-intencyjny-w-sprawie-wspolpracy-przy-realizacji-akademikow-56992
