Berlin, 5 October – The Rockfield and Ardian PBSA platform has acquired a majority stake in The Social Hub Berlin, a hybrid asset strategically located next to Berlin Alexanderplatz combining student accommodation, premium extended and short-stay offerings as well as spaces for the local community . As part of the transaction, The Social Hub will retain a minority holding in the asset and continue to operate the facility under a long-term management agreement. This represents a first step in the hybrid hospitality brand‘s new ambitious asset-light focused growth strategy.
Second investment German market
Following the acquisition of the “Blue Gate” student residence in Aachen last summer, this transaction marks the second investment into the German market under Rockfield and Ardian’s pan-European strategy dedicated to Purpose-Built Student Accommodation (PBSA), targeting one of Europe’s most undersupplied student housing markets. Berlin has a population of around 200,000 students – an estimated 25% of which are international – with a PBSA provision rate of just under 10%. The deal represents the second largest single-investment for the fund yet, bringing its total investment volume up to more than €1.16 billion and around 7,500 beds across Europe.
“Berlin is one of Europe’s most attractive and undersupplied student housing markets, making this hybrid asset a strong and unique addition to our growing portfolio. This investment reflects our strategy of investing in high-quality living assets in leading European cities, helping address the growing need for well-located, high-quality housing solutions for students and young people, while delivering an attractive cash flow profile to our Fund.”
— Mats Bartels, Investment Director Northern Europe, Rockfield
Partnership and Refurbishment program
The transaction establishes a new strategic partnership between Europe’s top tier vertically integrated living platform Rockfield, global private investment firm Ardian, and European hybrid hospitality brand The Social Hub. Alongside The Social Hub’s existing shareholders APG and GIC, the joint venture introduces long-term Core Plus capital and creates a framework for future investments. It is the first transaction executed as part of The Social Hub’s new asset-light strategy, as the group enters its next phase of expansion across Europe. The new model pairs the hospitality group’s unique operating platform and brand with institutional capital to fund the acquisition of existing assets and a pipeline of new sites, while retaining long-term management for each facility.
B Corp Certified The Social Hub’s prime Berlin asset comprises 474 units across 10 floors, combining student accommodation with premium extended and short-stay offerings, complemented by dynamic spaces open to the community. The partners will also fund a refurbishment program to enhance the asset’s quality, creating a state-of-the-art urban living model in alignment with The Social Hub’s premium design brand standards and concepts designed to foster community building. This includes upgraded rooms and spaces open to members of the local community including a new co-working space, expanded meetings & event spaces; a redesigned courtyard; a new state-of-the-art gym; an enhanced food and beverage offering; a club lounge, and more. A planned renovation programme worth 18 million euros will further enhance the quality of the asset. This will create a state-of-the-art concept for urban living and accommodation that is in line with The Social Hub’s brand standards.
”Berlin demonstrates the strength and attractiveness of our brand and operating model, the quality of our assets and the attractive cashflow they generate. We are excited to welcome Ardian and Rockfield as partners in our journey. This transaction is an important milestone in our asset-light growth strategy and supports our long-term development objectives as we continue to scale our unique, impact-driven hospitality model across Europe. We already operate 21 flagship properties in key European cities from Glasgow to Rome, with new hubs under development in Lisbon and Turin and plans progressing in Edinburgh, Paris, Milan and Rotterdam. This partnership provides a strong foundation for the next phase of our European expansion.”
— Denis Montrelay, Group CFO en CIO, The Social Hub
ARESAF Strategy in Europe
Rockfield’s and Ardian’s strategy is to create a diversified portfolio of high-quality assets, focusing on European markets (especially Germany, the Netherlands, Italy, Iberia and France) where student housing is in high demand and short supply in leading education hubs, characterized by a strong concentration of universities, a growing student population, and limited existing PBSA provision. With a Core Plus focus, the strategy aims to create value by enhancing the operational performance of its assets, as well as their potential to contribute to the global effort of reducing GHG emissions in line with the Paris Agreement.
“The Social Hub is a unique hybrid hospitality brand and best-in-class operator in one of Europe’s most compelling real estate segments, where student, professional and lifestyle living, hospitality, and community converge. Its Berlin location is a prime asset offering institutional-quality income with an attractive risk-adjusted return profile, underpinned by a proven operating platform and durable demand. We are delighted to build a strategic partnership with The Social Hub and to expand our collaboration across the broader platform.“
— Nico Rheims, Managing Director Real Estate, Ardian
