Student accommodation acquisition sets a UK record at £4.7bn
Student accommodation group IQ has been acquired in a £4.7bn deal.
The UK-wide business, which has 67 sites around the country housing 28,000 students and offices in Liverpool, Manchester, Preston and Salford, was sold by Goldman Sachs to US private equity group Blackstone.
The deal is believed to be the UK’s largest private real estate transaction.
Blackstone has bought the business in the belief that the UK’s student population is likely to grow even more in the future, with student numbers currently at an all-time high.
James Seppala, of Blackstone, said the deal was a “testament to our long-term belief in the UK. British higher education is globally renowned”.
Goldman owns 70% of IQ, and the medical research charity the Wellcome Trust owns 28%.
The Wellcome Trust first backed IQ Student Accommodation 14 years ago, and Goldman Sachs came on board in 2016.
The UK’s purpose-built student accommodation sector is valued at more than £50bn, and demand is expected to increase, especially from international students, despite the uncertainty surrounding Brexit, or health issues such as coronavirus.
Typical creature comforts for IQ residents include private rooms, on-site gyms and trendy open-plan communal areas.
IQ operates four sites in Manchester, and one each in Liverpool, Preston and Salford.
Room costs start from £118 per week in Preston and Salford, up to £182 per week for the best room in Liverpool and £203 per week in Manchester. Costs for IQ’s site in London Bankside are £370 per week.
