Rockfield and Ardian鈥檚 student housing joint venture has acquired a majority stake in The Social Hub Berlin, a hybrid asset next to Berlin Alexanderplatz combining student accommodation, premium extended and short-stay offerings and local community spaces.
While neither party disclosed financial details, it is thought that their investment is in the region of 鈧�100m, according to sources.
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.
It is second investment in Germany made by Rockfield and Ardian鈥檚 joint venture to invest in purpose-built student accommodation across Europe, following last year鈥檚 acquisition of the Blue Gate student residence in Aachen.
Rockfield and Ardian said the deal represents the second largest single-investment for the fund yet, bringing its total investment volume up to more than 鈧�1.16bn and around 7,500 beds across Europe.
The transaction also establishes a new strategic partnership between Rockfield, Ardian and The Social Hub.
Alongside The Social Hub鈥檚 existing shareholders APG and GIC, the joint venture introduces long-term core-plus capital and creates a framework for future investments, Rockfield and Ardian said.
It is also the first transaction executed as part of The Social Hub鈥檚 new asset-light strategy, pairing the hospitality group鈥檚 operating platform and brand with institutional capital to fund the acquisition of existing assets and a pipeline of new sites.
The Social Hub Berlin comprises 474 units across 10 floors, combining student accommodation with premium extended and short-stay offerings. The partners will also fund a refurbishment programme.
Mats Bartels, investment director for Northern Europe at Rockfield, said: 鈥淏erlin is one of Europe鈥檚 most attractive and undersupplied student housing markets, making this hybrid asset a strong and unique addition to our growing portfolio.
鈥淭his 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.鈥�
Nico Rheims, managing director for real estate at Ardian, said: 鈥淭he Social Hub is a unique hybrid hospitality brand and best-in-class operator in one of Europe鈥檚 most compelling real estate segments, where student, professional and lifestyle living, hospitality and community converge.
鈥淚ts 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.鈥�
Denis Montrelay, group CFO and CIO of The Social Hub Berlin, said: 鈥淏erlin demonstrates the strength and attractiveness of our brand and operating model, the quality of our assets and the attractive cashflow they generate.
鈥淲e 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.
鈥淲e 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.鈥�
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