October 2013 – International Campus AG (IC), the Munich specialist for developing and operating modern student residences, has incorporated a fund in Luxembourg for professional investors. The purpose of the fund is the creation of a larger portfolio of residential buildings for students, primarily in Germany.
According to CEO Horst Lieder, IC has raised €50 million of equity in a first closing entering directly into the investment stage. Further equity investors have shown strong interest in the fund.
International Campus AG plans to raise up to €250 million in fund commitments which would allow to build a portfolio with a total investment volume of up to €800 million. It is planned to develop properties within the fund over the next 3-5 years and exit within 5 to 7 years. Attractive risk-adjusted returns with a target yield (IRR) of 14 % on the equity are expected.
“The strategy of creating a platform of this nature for a large-volume portfolio in the area of student housing provides an attractive product for institutional investors that is unlike anything currently available in Germany for this segment. This is another step forward in providing access for investors to student housing in Germany as a standalone asset”, adds Rolf Engel, Chairman of the board of International Campus AG and Managing Partner of MMI.
For the Luxembourg fund, seven projects are secured. They are located in top cities like Bremen, Berlin, Frankfurt, Darmstadt, Hanover and Hamburg. Once the planned student residences are opened, International Campus AG will be operating more than 2,400 apartments in Germany.
MMI is co-founder and shareholder of International Campus AG.