Information on the Target

1 Asset Management is a distinguished investment management firm dedicated to identifying and capitalizing on growth opportunities across niche asset classes. The company collaborates with both institutional and private investors, managing a diverse portfolio that encompasses modern student housing, historic and airport hotels, veterinary clinics, forests, private debt in the Central and Eastern European (CEE) region, and high-cap U.S.-listed companies. With a focus on executing investments from inception to exit, 1 Asset Management emphasizes projects that adapt to evolving market conditions.

In a notable achievement for 2024, 1 Asset Management successfully acquired two office buildings in the Lipowy Office Park in Warsaw, with plans to transform these spaces into purpose-built student accommodations (PBSA). This €50 million investment, branded under SHED Living, will provide 640 affordable and modern living spaces for up to 752 students in the prestigious Ochota district, conveniently located near major universities including Warsaw Medical University and applied sciences institutions, thus addressing the growing demand for student housing in Poland.

Industry Overview in Poland

The student housing sector in Poland is experiencing significant growth, driven by an increasing student population and a rising demand for accessible accommodation. Currently, Poland hosts approximately 1.2 million students, with Warsaw accommodating more than 220,000, making it the largest academic hub in the CEE region. This surge in student numbers has led to a marked need for additional housing options, particularly those that are affordable and suitable for modern living.

Furthermore, the strategic location of new developments plays a vital role in attracting student residents. The Ochota district, where the new student accommodations will be located, is home to several of Warsaw's top universities and a vibrant academic environment, making it a prime location for housing targeting students.

The current landscape also reflects a shortage of quality student accommodation, further highlighting the importance of this investment. As the demand for high-quality living spaces continues to outpace supply, there are ripe opportunities for growth within the sector.

Looking ahead, the student housing market is expected to evolve with various trends, including a focus on sustainability and responsiveness to the needs of students. As more investors and developers enter the market, the emphasis on creating environmentally and socially responsible housing has become increasingly pronounced, enhancing the overall quality of student living experiences.

The Rationale Behind the Deal

1 Asset Management's strategic decision to expand into Poland was fundamentally influenced by the country's market potential for student housing. The increasing student population, coupled with the lack of quality accommodation, underscores the investment's long-term growth opportunity. The acquisition of properties in Warsaw aims to cater to this pressing demand, ultimately improving the quality of life for students.

This investment is also aligned with the broader mission of the CEE Student Housing Fund, which has successfully attracted €112 million for the expansion of PBSA across Central and Eastern Europe. Notably, €50 million of these funds have been committed by the European Investment Fund (EIF), which not only solidifies the project's credibility but also enhances its financial backing.

Information About the Investor

1 Asset Management operates as an innovative leader within the investment management sector, focusing on niche asset classes where they see substantial growth potential. The firm’s approach is comprehensive, managing investments throughout the entire lifecycle, from the initial stages to exit. Their curated portfolio reflects a commitment to creating value while addressing essential societal needs through strategic investments.

As the firm seeks new opportunities, they have begun exploring additional markets, such as North America, to meet the increasing global demand for high-quality and affordable student accommodation. This expansion demonstrates their forward-thinking strategy and dedication to adapting to changing market dynamics.

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This investment by 1 Asset Management represents a significant opportunity within the student housing market in Poland. With the substantial and growing demand for quality student accommodations, the timing of this investment seems particularly opportune. The strategic location in Warsaw, alongside the existing pipeline to accommodate 1,800 students across several cities, portrays a clear understanding of market needs and projected growth.

Furthermore, this investment aligns with current trends emphasizing sustainability and social impact, which are increasingly favored by institutional investors. As 1 Asset Management continues to strengthen its portfolio and build on its successes, their dedication to improving educational access through affordable housing will likely resonate well with stakeholders.

However, challenges remain, including potential fluctuations in the financial markets and shifts in student housing demand post-pandemic. Despite these concerns, the fundamentals underpinning the investment appear robust. The proximity to major universities, coupled with a significant shortage of quality accommodation, positions this project favorably.

Overall, considering both the current landscape and future trends, this investment is likely to be a sound decision, enhancing 1 Asset Management's portfolio while contributing to the vital need for quality student housing in Poland and potentially beyond.

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