A landmark PBSA transaction in Poland

13 May 2019

Kajima Student Housing Limited, a subsidiary of Japanese conglomerate Kajima Corporation, has entered into a partnership with Griffin Real Estate Partners (GRE) and acquired Student Depot, Poland’s largest provider of Purpose Built Student Accommodation (PBSA), from Oaktree Capital Management for EUR 60m.

Poland is the sixth largest student market in Europe and has an increasing number of international students. Student Depot was originally set up by GRE and Oaktree in 2015 and has grown to become the largest owner and operator of PBSA in Poland. By September 2019, Student Depot will operate 2,000 beds across five sites in Poland. Kajima is the majority partner with a 90% stake in the joint venture with GRE.

Savills provided due diligence and commercial advice to the vendor.

Marcus Roberts, Head of European Investment and Development in Savills Operational Capital Markets Team, says: "This is the first PBSA portfolio deal and the largest PBSA transaction by investment volume in Polish history. It highlights the significant and growing interest from domestic and international capital, not just in PBSA but in the wider Polish real estate market, which attracted €7.2 billion in 2018 – a 45% increase on the €5 billion invested in 2017. This groundbreaking deal is also another example of successful collaboration between Savills European team and our Polish team, combining our sector knowledge, experience and local expertise.”

Kamil Kowa, Director, Savills Poland Board Member and Head of Corporate Finance & Valuation, says: “Student Depot attracted a lot of interest from investors from various countries. In an emerging PBSA market in Poland, demand for this asset class exceeds supply, which is mostly due to attractive yields. We are very proud to have had the chance to act as an adviser in the largest transaction in the PBSA market in Poland.”