CORESTATE acquires CRM Students Ltd. (CRM), the largest independent student accommodation management company in the UK, for approximately Euro 17 million. Thus, CORESTATE’s assets under management increase from Euro 22 billion to Euro 25 billion. The acquisition has been financed entirely from CORESTATE’s 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 Euro 17 million. Thus, CORESTATE’s assets under management increase from Euro 22 billion to Euro 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 Euro 13 million and an EBITDA of approximately Euro 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.
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.
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With some 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange (SDAX) and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 13 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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