CLV completes £240m Opal deal
CAMPUS Living Villages (CLV) has completed its purchase of eight former Opal student sites for around £240m.
It has teamed up with Arlington Investors, a Jersey-based company representing Middle East investors. The deal has been part-funded through a £210m listed bond which CLV said had been subscribed to in full by a single purchaser whose identity was not disclosed.
The acquisition gives CLV an extra 4,539 beds, more than doubling the size of its UK portfolio to 8,360.
The 50:50 joint venture is buying the buildings from PwC which was one of four administrators appointed to Manchester-based Opal last March.
The eight blocks were valued at £300m when PwC first started the marketing process. They are: Phase two of Wilmslow Park in Rusholme, Manchester; Opal Court in Liverpool; Opal 2 and Opal 3 in Leeds; Opal 1, Birmingham; Opal 1, Newport; Bonington Halls, Nottingham; and MacMillan Student Village in Greenwich, London.
Gary Clarke, CLV’s UK chief executive officer, said: “The acquisition of these assets provides CLV with operational scale in a key global market, and takes its global platform across the US, UK, Australia and New Zealand to over 40,000 beds.
“Whilst several of these newly acquired assets are not physically on campus, they all have in common strong links to university partners, and the opportunity to strengthen these partnerships through collaboration and commitment to the student experience.”
George Shweiry, chief executive of Arlington Advisors, said: “The dynamics of the UK student housing sector present a compelling story, where we are seeing a shortage of good quality stock, falling development pipeline and a growing demand. Taken in the context of what is happening around the world in emerging markets, we expect to see a significant increase in international student mobility which is only going to drive up demand further.”
Around 60 staff will transfer to CLV. The buyers were advised by law firm Osborne Clarke, financial advisor DWPF, accountant Grant Thornton, corporate finance company Traderisks, and agents Knight Frank and Savills.
CLV, which has its headquarters in Australia, is also involved in the construction of a 1,367-bed scheme at the University of Salford.
