Xior buys €939 million worth of student housing in Germany, Poland, Denmark and Sweden

The Belgian real estate company Xior is expanding its student housing portfolio by a third in one fell swoop. The listed company specializing in student housing paid 939 million euros for more than 5,300 units, it announced on Monday.

Xior purchased eleven complexes, three of which are still under construction, with 5,341 units in nine university towns in Germany, Poland, Denmark and Sweden. Xior is acquiring them from operator Basecamp Group, whose operating companies are based in Denmark, and two funds that invest in student housing.

The deal marks Xior's first steps into Germany, Denmark and Sweden. The group already set foot in Poland in February. Prior to that, it was already active in Belgium, the Netherlands, Portugal and Spain. As a result of the acquisition, Xior is changing its management structure "to better reflect its larger geographical and operational scope": the activities in Portugal and Spain will have their own director.

The eight already operational residences will immediately generate rent income. Xior expects earnings per share to rise from 2 to 2.07 euros in 2022 and 2.20 to 2.38 euros in 2023. In 2021, earnings per share stood at 1.8 euros.

CEO Christian Teunissen calls the acquisition a "milestone" in the growth of his company.

"From the start of Xior in 2007, we have continued to grow and professionalize. The company has evolved at lightning speed from a small family business to a real professional player in student housing."

With the expansion, Xior says the total value of its real estate portfolio will reach 3.7 billion euros. The company owns a total of 26,526 units in 43 cities.

(KR)

© John MACDOUGALL / AFP