£135m deal for student property group’s portfolio

Student accommodation provider Study Inn has sold its property assets in a £135m deal that will help fund its new portfolio.

Investment group Arlington Advisors has bought its 10 sites – six in Coventry and one each in Bristol, Cambridge, Nottingham and Sheffield – and the 1,500 rooms takes its student portfolio above 10,000 beds.

Sean McKeown, Arlington Advisors’ managing director, said these cities “are experiencing strong international demand for good quality student accommodation”.

He said: “The Study Inn service model adds a strong alternate product to the Arlington portfolio and shows how students can receive exceptional service at a sensible price in Russell group cities where demand continues to grow.”

Coventry-based Study Inn will continue to operate the Study Inn assets for Arlington under the Study Inn Brand. It plans to press on with its expansion strategy, with Liverpool and Glasgow high on its list.

Eddie Jefferson and Kieran Leahy, Study Inn co-founders, said: “Collaboration on this transaction has released significant funds for us to invest in our second portfolio which is already under way, with a 320-room scheme in Bristol due to open in Sept 2018.

“Continuing management and development of the Study Inn brand is something we are passionate about and Arlington’s understanding of our vision and direction was key to our decision to partner with them.”

Arlington’s investment was partly financed by a 38-year bond that was fully subscribed by funds managed by Aberdeen Standard Investments. The balance of the debt was provided by MetLife.

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