Kuwait’s Rasameel Investment Company has teamed up with 90 North Real Estate Partners to buy two student properties, in Edinburgh and Leicester.
The freehold interest in both properties – Goods Corner in Edinburgh, and Dover Street in Leicester – were sold for a combined £22m by developer Aimrok.
Goods Corner comprises 108 studio bedrooms and is located opposite the University of Edinburgh’s King’s Building Campus, the main campus of the College of Science and Engineering, to the south of the city.
Dover Street in Leicester consists of 135 bedrooms in the city centre, close to the railway station as well as University of Leicester and De Montfort University.
Both properties were constructed in 2018. Homes for Students will manage and operate both assets on behalf of the buyers.
John Yeend, partner at 90 North Real Estate Partners, said: “These two new properties are in core locations and provide housing to high-ranked universities in undersupplied markets.
“With structuring to ensure continuity of income to cover this current period of occupational uncertainty, we expect these investments to deliver strong performance.”
Cushman & Wakefield, which advised the seller, said each also has “strong bookings for the 2020/21 academic year”.
Russell Hefferan, partner in Cushman & Wakefield’s student accommodation capital markets team, said: “While in the immediate term Covid-19 presents obvious challenges for the industry, this transaction provides an excellent example of the strong, long-term fundamentals student accommodation offers.
“Overall, in the UK there is a healthy amount of student applications, with overseas numbers ahead of 2019 according to UCAS. From 2021 there is also going to be a continued increase in the number of UK 18-year-olds coming through the system. The demand and supply dynamics remain positive for the sector and it is in good shape to weather the storm.”
Barclays Bank provided senior debt to the buyer.
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