BGO enters German PBSA market with Cologne acquisition

Global real estate investor BGO has initiated its dedicated strategy for purpose-built student accommodation (PBSA) in Germany.

PBSA Germany - BGO

This launch begins with the acquisition of K115, an already operating student housing property located in central Cologne.

For this German PBSA strategy, BGO plans to invest in existing properties, undertake refurbishments and conversions, and develop new assets. These efforts will focus on leading university cities that have large student populations and favourable supply-demand characteristics.

K115, which contains 153 units, represents the fund's initial venture into Germany's PBSA sector, an area currently experiencing structural undersupply. This investment aligns with BGO's broader focus on "living strategies" that benefit from robust, long-term demand trends.

The property is strategically located in a prime student area of Cologne, offering excellent access to universities, and has significant potential for value enhancement through asset management. BGO is collaborating with operating partners N17 Projects and Callidus Real Estate Capital, a joint venture, and has engaged CIV (NeonWood), a leading PBSA operator, for the property's operational management.

Moritz Irmen, principal at BGO, said: “Germany’s student housing market presents a compelling structural opportunity, with demand continuing to outpace supply in leading university cities. We are building a scalable platform to capture this through targeted acquisitions, active asset management and selective development. K115 is a strong first step that brings our strategy to life and reinforces our conviction in the opportunity ahead.”

Michael Schnur, at N17, said: “K115 embodies our approach — targeting operational assets with potential for improvement in cities where student housing demand far exceeds supply. N17 has a strong conviction and commitment to the PBSA sector in Germany, driven by the need to provide housing solutions that combine quality, sustainability and flexibility, aligned with new urban lifestyles.”

BGO was advised by Savills, EY, Greenberg Traurig, and Simmons & Simmons.