Xior takes major stake in Quares

Tim Harrup

Consolidation within industry has become a commonplace trend over recent years. The realization that critical mass is crucial and that too many companies within one sector merely do harm to each other, has led to an increasing trend towards fewer larger companies. The latest to be announced comes within a sector which until recently was niche, and is entirely Belgian. Xior Student housing has agreed to acquire a third (32.36%) of the shares of Quares Student Housing.

Along with this stakeholding, Xior has also announced announces t its intention to launch a voluntary public tender offer for the remaining shares of Quares Student Housing. The Belgian market leaders in this domain thus intend to join forces, creating the largest Belgian student housing platform. Xior says that its total investment in this transaction is approximately 155.8 million Euros and that it has an expected initial yield in line with the current valuation of the portfolio in Belgium. The total value of its Belgian portfolio will increase by more than 25% and there will be a positive impact on earnings & operational margin through direct savings and economies of scale. The EPRA earnings forecast for 2022 increases from 10% to 15%.

Speaking of his company’s latest move, Christian Teunissen, CEO of Xior states: “We continue to strongly believe in our home market and are delighted to have the opportunity to grow by as much as a quarter in Belgium's top student cities. This strategic transaction is a unique opportunity to combine the strengths of two of the largest professional players and to create an even more powerful, profitable and professional platform from this synergy. Through the planned takeover of the Quares Student Housing portfolio, we are further expanding our range of high quality rooms, always with the vision and commitment to unburden students and their parents and offer them the ideal place to live, study and relax. In short, a transaction with many advantages for both the student and the shareholder.

Herman Du Bois, CEO of Quares Student Housing, for his part, explains: “The plan to bring together the teams of Quares Student Housing and Xior will result in a further improvement of our service to national and international students and makes us stronger in meeting the challenge of the growing shortage of affordable, high-quality student rooms in Belgium. Creating a second home for our students deserves the necessary attention and a professional framework. That is precisely what Xior and Quares Student Housing stand for.”