Student Housing Gold Rush: Why Brookfield's €1.3B Livensa Sale to Nido Signals a Sector Shift

The €1.3 billion sale of Brookfield's Livensa Living—a Spanish student housing giant—to Nido Living, backed by Canada Pension Plan Investment Board (CPP Investments), marks a watershed moment in Europe's PBSA (Purpose-Built Student Accommodation) market. This transaction, valued at a stratospheric 29x EBITDA multiple, isn't just a deal; it's a declaration of confidence in a sector primed for consolidation and growth. For investors, it's a clarion call to prioritize platforms with scalable portfolios and exposure to prime locations in education hubs. Let's unpack why this deal matters and what it means for the future of European student housing.

The Math Behind the Madness: Valuations and Growth Drivers

Livensa's enterprise value of €1.3 billion—based on its €45 million EBITDA—reflects a sector in overdrive. At 29x EBITDA, this multiple exceeds the 22x paid in 2022 for Spain's Resa (acquired by PGGM Infrastructure), signaling escalating investor optimism. But is this overvaluation, or is the math sound?

Consider Spain's student housing crisis: only 107,000 beds exist today, versus a projected need of 543,600. With international student enrollment surging to 11.4% of total university populations (up from 5.6% in 2010), the demand-supply gap is a structural tailwind. Livensa's plan to expand its portfolio to 20,000 beds by 2028—backed by €700 million in investment—aligns with this growth. Add to this rising occupancy rates (Livensa's properties hover at 95% occupancy) and inflation-resistant rental growth, and the multiple begins to make sense.

Brookfield's decision to exit Livensa isn't capricious. Its sale reflects a strategic pivot toward sectors with clearer supply-demand dynamics—student housing included. Meanwhile, its US student housing acquisition for $893 million (at steep discounts to replacement costs) underscores a broader thesis: invest where education meets urbanization.

Auction Drama: Why Nido Won, and What It Says About Consolidation

The Livensa sale wasn't a walk in the park. Bidders included heavyweights like KKR Infrastructure, Hines, and Global Student Accommodation (GSA). Nido's victory hinges on two factors:
1. CPP's deep pockets and sector focus: CPP's €460 million commitment to Nido's platform signals its intent to build a pan-European PBSA giant. With Nido already owning 13,000 beds pre-acquisition, the combined entity will command 25,000 beds by 2031, rivaling the sector's largest players.
2. Strategic alignment: Nido's vision to dominate Spain, Portugal, Italy, and Germany—regions with acute housing shortages—aligns perfectly with Livensa's footprint.

This deal isn't an outlier; it's part of a sector-wide consolidation wave. Investors like CPP are rotating capital out of non-core real estate (e.g., retail) into PBSA, where returns are more predictable. As Thomas Jackson of CPP noted, this is about “risk-adjusted returns for the pension fund”—a ringing endorsement of the sector's stability.

The Bigger Picture: Why Student Housing is the New Safe Asset

The Livensa sale isn't just about Spain. It's a microcosm of Europe's student housing renaissance:
- Demographics: Rising university enrollments (especially in STEM-heavy economies) are fueling demand.
- Urbanization: Cities like Madrid, Lisbon, and Berlin are becoming education hubs, driving prime location scarcity.
- Resilience: Unlike office or retail real estate, student housing thrives during recessions. Even as interest rates rise, occupancy and rents remain stubbornly high.

For investors, this is a “buy and hold” asset class. Platforms like Nido—operating in high-growth markets with expansion pipelines—offer optionality. Their ability to scale (via acquisitions or greenfield projects) will determine long-term value.

Investment Takeaways: Where to Look, and Why

1. Focus on geographic hotspots: Spain, Portugal, and Germany are undersupplied and education-driven. Avoid markets like the UK, where oversupply risks loom.
2. Follow the capital: CPP, KKR, and others aren't just chasing yields—they're building systematic platforms. Nido's €650 million debt package (arranged by Morgan Stanley) signals strong financing access, a critical edge in a high-leverage sector.
3. Prioritize scalability: Avoid single-asset plays. Look for companies like Livensa/Nido with 20%+ annual bed growth targets and clear funding pipelines.

Final Analysis: This Deal is a Buying Signal

The Brookfield-Nido deal isn't just a M&A headline—it's a bet on a sector where supply constraints and demographic tailwinds are creating undervalued assets. At 29x EBITDA, Livensa is pricey today, but its growth runway suggests further upside. For investors, this is a “now or never” moment: the window to capture these valuations before consolidation fully plays out is narrowing.

The message is clear: student housing is the new infrastructure. Back the right platforms, and you'll ride the wave of Europe's education boom.