The Canada Pension Plan Investment Board is investing up to $40 million in the creation of a real estate investment platform dedicated to purpose-built student accommodation opportunities in Europe.
The new group is being created through the CPPIB’s acquisition of Nido Living (which will be a wholly owned but independently-operated portfolio company), as well as its acquisition of Round Hill Capital’s minority stake in Round Hill European Student Accommodation Partnership, an existing joint venture between Round Hill Capital and the CPPIB.
“In Europe, student populations are increasing as labour markets upskill, resulting in growing pressure for accommodation, positioning this platform well to deliver strong risk-adjusted returns for the [CPPIB],” said Tom Jackson, managing director and head of real estate in Europe at the CPPIB, in a press release.
Read: CPPIB invests in European student housing, OMERS buys solar power producer
The CPPIB is also selling its holdings in Dorna Sports, a sports management and media firm managing professional motorcycle racing competitions, in a deal worth $1.9 billion.
As part of the transaction, the CPPIB will receive compensation in the form of cash (75 per cent) and series C Liberty Formula One tracking stock (25 per cent). The deal is expected to be completed by the end of 2024, pending customary conditions and regulatory approvals.
In a press release, Hafiz Lalani, managing director and global head of direct private equity at the CPPIB, said the investment organization is confident Dorna will benefit from new ownership.
Read: CPPIB and Ontario Teachers’ reinvesting in India infrastructure fund
In other news, the Caisse de dépôt et placement du Québec is agreeing to a transaction that will see Nuvei Corp. become a private company.
The Caisse owns roughly 23.21 per cent of the issued and outstanding shares in the Quebec-based payment technology firm, as well as 21.42 per cent of the outstanding voting rights. The deal will give Nuvei a valuation of US$6.3 billion.
The investment organization is expected to indirectly own or control approximately 12 per cent of the resulting private company. As part of the transaction the Caisse is agreeing to roll 75 per cent of its shares alongside fellow controlling shareholders, Philip Fayer and Novacap, who will collectively receive an aggregate cash payment of approximately US$560 million.
Read: Caisse participating in financing round for Quebec payment-tech provider