CORESTATE acquires UK’s largest independent student accommodation provider
and continues on growth course
CORESTATE erwirbt CRM Students Ltd. (CRM), den größten unabhängigen Manager für Studentisches Wohnen in Großbritannien, für rund EUR 17 Mio. Das verwaltete Vermögen (Assets under Management) von CORESTATE erhöht sich demnach von EUR 22 Mrd. auf EUR 25 Mrd. Die Akquisition wird vollständig aus dem freien Cashflow finanziert.
- Establishment of a market-leading European micro-living platform
- Number of beds in the micro-living segment almost quadruples to more than 30,000
- CORESTATE’s assets under management increase by EUR 3 billion to EUR 25 billion
- Continuous expansion of stable revenue base
- Financing of the transaction entirely from free cash flow
CORESTATE Capital Holding S.A. (CORESTATE), a leading European investment manager for real estate, acquires CRM Students Ltd. (CRM), the largest independent student accommodation management company in the UK, for approximately EUR 17 million. Thus, CORESTATE’s assets under management increase from EUR 22 billion to EUR 25 billion. The acquisition has been financed entirely from CORESTATE’s free cash flow.
“We are aiming to become Europe’s leading provider for micro-living and student accommodation, a market that is growing dynamically. We are already holding the top position in Germany. By acquiring CRM, we are bringing a prominent international partner on board,” says Dr. Michael Bütter, CEO of CORESTATE. “CRM will become part of our multi-boutique platform, granting us market entry in the UK. Furthermore, the comprehensive expertise in international student accommodation operations will open up additional synergies. Through CRM’s project pipeline, we will gain access to additional investment opportunities in interesting European university cities. By using these opportunities, we want to continue our growth.”
“CRM is a highly professionalised real estate manager in the micro-living segment and maintains a broad and attractive customer base. With their specialised business model, CRM delivers stable, long-term and predictable profit contributions, and perfectly rounds off the sustainable revenue structures of our business model. Already today, clearly above 80% of our revenues are recurrent in nature,” Bütter adds.
CORESTATE expands its micro-living offering to an attractive market
With 23,000 beds and 145 locations, CRM is by far the largest independent student accommodation management company in the UK, a market offering very attractive growth opportunities. This year, the company anticipates sales at approximately EUR 13 million and an EBITDA of approximately EUR 2 million.
CRM advises customers such as universities as well as institutional and semi-professional investors from the concept stage of a project to marketing and the long-term management of real estate assets. CRM thereby ideally complements CORESTATE’s existing micro-living offering – both in terms of regions and concepts.
CORESTATE is the market leader in micro-living investments in Germany. Under the brands YOUNIQ, LinkedLiving and Upartments, the company is playing an active role in the student accommodation, serviced-apartments and business-apartments segments. It covers the entire range of real estate investment services, from acquisition and sales, financing and property development to professional management.
CORESTATE ist Marktführer für Micro-Living-Investments in Deutschland. Unter den Marken YOUNIQ, LinkedLiving und Upartments ist CORESTATE in den Bereichen Studentisches Wohnen, Serviced Apartments und Business Apartments aktiv. Das Unternehmen deckt die gesamte Leistungspalette für Immobilieninvestments ab – vom An- und Verkauf über die Finanzierung und Entwicklung der Objekte bis hin zum professionellen Management.
Increase in international expertise in the student accommodation segment
CORESTATE acquires CRM from founder Keith White and a group of private investors. CEO Stewart Moore and his management team will continue to lead CRM’s business activities and will play a key role in further developing CORESTATE’s European platform, while Keith White will, as Non-Executive Chairman, further contribute his network and his many years of expertise in student accommodation to CORESTATE.
Apart from the location, operator quality is the decisive success factor in the micro-living segment. By acquiring CRM, CORESTATE has significantly boosted its service profile in the international student accommodation segment. CORESTATE unifies broad asset management competencies with a strong expertise in property management for an effective national and international asset marketing, thus ensuring high utilisation rates.
T: +49 69 3535630-108 / M: +49 174 4022348
Dr. Kai Gregor Klinger
T: +49 69 3535630107 / M: +49 152 22755400
About CORESTATE Capital Holding S.A.
CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with approximately EUR 25bn in assets under management. As a fully integrated real estate platform, CORESTATE offers its clients combined expertise in the areas of investment and fund management as well as real estate management services. The company operates as a respected business partner of institutional clients and wealthy private investors internationally. CORESTATE is headquartered in Luxembourg and has 42 offices including in Frankfurt, London, Madrid, Singapore and Zurich. The company employs over 900 people and is listed in the regulated market (SDAX) of the Frankfurt Stock Exchange. Further information is available at www.corestate-capital.com.
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