Student Housing Due Diligence, Bucharest

Navigator conducted commercial and financial due diligence and supported investment promotion for a proposed 14,180 m² purpose built student housing development in Bucharest. The Herăstrău project was planned as a large scale student accommodation complex comprising 484 residential units with capacity for 506 students.

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Project Context

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Bucharest has a substantial university population, creating demand for professionally managed student accommodation with convenient access to universities, public transport and central areas of the city.

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The development is located in the Romexpo area, approximately 500 metres from the 1 Mai metro station. The University of Agronomic Sciences and Veterinary Medicine and the Romanian American University are located approximately 200 metres from the site. Universities around Piața Romană and Piața Universității can also be reached directly by metro.

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The student housing project forms part of a larger mixed use development planned by an international property group in a rapidly developing area of Bucharest.

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Development Concept

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The project was designed to provide contemporary, high quality student accommodation supported by catering, leisure, study and resident services. The proposed development comprises:

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• 484 residential units across 12 above ground floors

• Capacity for 506 students

• Predominantly high specification studios with private bathrooms

• 460 m² of ground floor retail space

• An underground car park with 96 spaces

• Onsite management, maintenance and student support services

 

Resident Facilities

 

The planned resident facilities include:

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• Café

• Fitness centre

• Landscaped courtyard and community area

• Communal study rooms and television lounges

• Laundry facilities

• Games and recreation space

• Resident storage

 

Student Services and Benefits

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The proposed accommodation offer includes:

• Central Bucharest location

• Proximity to universities and public transport

• Internet access

• Round the clock security

• Contemporary interior and building design

• Cashless payment environment

• Student support services

• Onsite maintenance personnel

 

What We Did

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Navigator supported the developer through three principal workstreams:

 

Construction Plans and Development Costs

We reviewed the proposed construction plans, development specifications and project cost estimates. This included detailed verification of the assumptions underpinning the construction budget and overall investment requirements.

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Financial Model and Investor Returns

We assessed the project financial model, including its operating assumptions, funding requirements and projected equity returns. The review considered the relationship between development costs, accommodation capacity, operating income and investor performance.

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Investment Promotion

We supported communication with prospective project investors, presenting the development concept, investment rationale, financial structure and anticipated returns.

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Areas of Expertise​

Property Development; Purpose Built Student Accommodation; Property Due Diligence; Investment Appraisal; Construction Cost Review; Financial Modelling; Equity Return Analysis; Investment Promotion; Mixed Use Development; Student Housing; Bucharest Property Market

 

Confidentiality Notice

The project reference presented here is an actual example of Navigator Consulting's experience. Stock photography and conceptual images are used for illustrative purposes only and do not depict the actual project, client, owner or location. Certain technical, financial and commercial information has been modified, generalised or omitted in order to preserve client confidentiality and commercially sensitive information.