AXA Investment Managers – Real Assets (AXA IM Alts) has significantly expanded its financial commitment to student housing across Europe, successfully securing an additional €660 million from international institutional investors and sovereign wealth funds. With this latest round of investment, AXA’s European Student Accommodation Strategy (ESAS) now totals around €1.3 billion.
Expanding with The Boost Society
Central to AXA’s strategic vision is The Boost Society, an innovative platform specializing in student housing and co-living solutions, established following AXA’s acquisition of the KLEY Group in 2019. Currently, The Boost Society operates approximately 8,300 student beds across 32 properties located in France and Spain.
Looking forward, AXA plans significant growth, adding 3,900 beds across 10 upcoming projects, with an ambitious goal of reaching approximately 12,000 beds by 2028.
A Versatile Investment Strategy
The new capital allows AXA IM Alts to effectively diversify its investment approach. This strategy includes acquiring existing residential properties, initiating new building projects, and converting commercial office spaces into residential facilities. While maintaining a strong emphasis on France, AXA will also strategically target other major European cities where student housing shortages are particularly acute.
By 2031, AXA aims to grow its student housing portfolio to an estimated total value of €3 billion.
Addressing Market Demand
The European student housing market faces a substantial gap between supply and demand. Over the past decade, student enrollment has risen by approximately 15%, and forecasts predict an additional 10% growth by 2030. Complications from strict regulations and limited prime real estate availability have constrained new developments, creating attractive opportunities for strategic investors like AXA.
Perspectives from AXA Leadership
Timothée Rauly, Global Co-Head of Real Estate at AXA IM Alts, highlighted the robust and stable nature of the student housing sector, driven by consistent demographic trends. Rauly emphasized that this additional funding would accelerate the growth of The Boost Society, enhancing AXA’s position as a leader in the student accommodation market.
Florence Dard, Global Head of Client Group at AXA IM Alts, noted the strong support from investors, attributing their confidence to AXA’s proven management expertise and the quality of its existing assets.
Conclusion
AXA IM Alts’ expanded financial commitment to student housing, totaling €1.3 billion, represents strategic foresight in response to Europe’s growing student accommodation needs. Supported by solid investor confidence and clearly defined growth objectives, AXA is positioned to significantly influence the development of student housing across the continent.
