Student accommodation specialist Scape has launched a £500m joint venture with Dutch pension fund APG.
Scape will use funding from the joint venture to add more than 10,000 beds to its student portfolio in the UK and Ireland, including 788 at a new development in Canada Water, SE16.
The pair are starting the venture with roughly 1,000 student beds in London and the South East, as well as the £250m mixed-use residential and student-led development in Canada Water and the first Scape Living building in Guildford.
Scape founder and chairman Nigel Taee said the student accommodation business “is just the beginning” for the company and that it now wants to move into “new territories” with the Scape Living brand.
Co-founder and chief executive Tom Ward added: “Throughout the Covid-19 pandemic we have been committed to focusing on global business expansion and ensuring long-term resilience. The PBSA sector has proven to be strong, despite the challenges of the last few months, with accommodation providers adapting to these new conditions and adjusting operations accordingly.”
Robert-Jan Foortse, head of European real estate at APG Asset Management, described the UK student and housing markets as offering “very compelling investment opportunities that provide our clients with long-term stable returns”.
He added: “Both face long-term favourable demand through continued trends such as increasing global international student mobility, growing domestic student population and growing household formation. The continued attraction of the UK education market and the limited space available in cities requires more flexible and high-quality accommodation with trusted brands such as Scape.”
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