HAMBURG—MPC Capital AG has sold a portfolio of more than 1,000 student apartments in German university cities to Chicago-based investment firm Harrison Street Real Estate Capital. Deal terms were not disclosed. Harrison Street and MPC have formed a joint venture partnership that will seek to expand the portfolio through both acquisitions and development.

Marketed under the STAYTOO brand, the student housing portfolio consists of two properties in Berlin and one each in Bonn, Kaiserslautern, Leipzig und Nuremberg; the latter two are already open for occupancy. It marks the German debut of Harrison Street, one of the largest owners of student housing in the US and Europe with a portfolio of about 73,000 beds. The company has been an active investor in Europe since opening its UK office in 2015.

Under terms of the JV, the apartments marketed under the STAYTOO brand will continue to be managed by MPC Capital's Micro-Living team following the sale. “Germany has Europe's largest student population and a supply-constrained student accommodation market, which coupled with strong demand and enrollment growth presents an attractive opportunity,” says Robert Mathias, senior managing director and head of international at Harrison Street. “The properties in the portfolio are ideally located in five established university cities. We look forward to working closely with MPC and bringing our deep expertise in student housing to strategically build the portfolio across the continent.”