£700m portfolio of student properties acquired by partnership
A HALF-built portfolio of student properties currently comprising 7,150 beds with 3,516 more being developed – including many in Liverpool – has been acquired by Singapore sovereign wealth fund GIC and GSA for £700m.
GIC and specialist student accommodation developer GSA have bought the halls from funds managed by Oaktree Capital Management, along with new operating platform The Student Housing Company – the brand the they will be run under.
The portfolio consists of nine buildings in six university cities – Liverpool, Bristol, London, Edinburgh, Cardiff and Southampton. The pipeline of 3,516 will be developed by GSA over the next three years.
GSA founder and chairman Nicholas Porter said: “Buying this portfolio gives us a platform for growth in the UK, adding to the properties we have in five cities we have already.”
The student accommodation market in the UK is now believed to be worth more than £23bn as a result of high demand.
Madeleine Cosgrave, regional head, Europe, at GIC Real Estate, said: “As a long-term value investor, we believe student accommodation will be a sector that continues to deliver steady rental growth and resilient income returns amidst a challenging, low-yield environment.”
GIC, which manages Singapore’s foreign reserves, has more than $100bn of assets under management.
