Brookfield Acquires Controlling Stake in International Campus Group
- Brookfield real estate fund becomes majority shareholder
- Focus on the core products of apartments for students and young professionals
- IC follows a pan-European strategy with focus on Germany
- 20,000 units under management planned for the medium term
Subject to the approval of antitrust merger control, a private real estate fund managed by Brookfield Asset Management has secured a controlling stake in International Campus Group, and will sponsor its future growth. The terms of the transaction remain confidential. Rolf Engel will continue to chair the supervisory board and the fund management. Horst Lieder, along with Rolf Engel founder of International Campus, will remain as CEO to guide the expansion of the company.
According to Horst Lieder, CEO of International Campus AG, “Brookfield’s comprehensive, long-term-oriented commitment shows the great deal of trust placed in the expertise of International Campus and the further growth potential for this segment in Europe. We will use the fresh capital to expand and scale our business model in Western and Central Europe, with an emphasis on Germany. International Campus will continue to focus on its core products of apartments for students and young professionals.”
Commenting on the strategy, Lieder says, “We are currently operating, implementing, or planning a total of about 11,800 apartments in 33 locations in four countries. Our objective is to penetrate the market further with around 20,000 units in the medium-term. The strategy is growing our existing business and to build up an on-balance sheet real estate portfolio of significant scale. At the same time, we will continue to manage our existing funds. ”
Zach Vaughan, Managing Partner and European real estate head at Brookfield, says, “There is unmet demand for purpose-built student and young professional accommodation in Germany and Continental Europe. Although this sector is relatively nascent, International Campus is a market leader and has the operating, sourcing and development capabilities necessary to build a first-class institutional portfolio. We are excited about this opportunity and look forward to working with International Campus on their ambitious growth plans.”
Brookfield Asset Management is listed on the NYSE, TSX and Euronext and has more than 230 billion euros of assets under management in 30 countries overseen by around 70,000 employees. In Germany, Brookfield and other partners purchased Potsdamer Platz in Berlin, including 16 buildings, ten streets, and two squares at the end of 2015.
