Fund manager abrdn is making its move into the undersupplied purpose-built student accommodation sector with the launch of a new joint venture with two experts in the field.
The jv, branded MYS Student Living, will be led by joint managing directors David Mathewson and Murdo Mcilhagger.
The duo were previously at Straits Capitol, the Edinburgh-based property asset management arm of Singapore Press Holdings, where Mathewson was head of acquisitions and Mcilhagger was head of investment management. Since 2018, they had built up a portfolio of more than 5,000 beds across 18 properties in 10 cities.
At abrdn, MYS Student Living will aim to address the UK and Europe’s continued shortage of quality, sustainable accommodation for a growing student population.
The partners aim to provide a differentiated experience for students, universities and investors by offering a values-led proposition with strong ESG credentials and maximising the customer experience.
Neil Slater, head of real assets at abrdn (pictured), said: “PBSA investment solutions are an interesting and growing segment of the residential market, offering income-driven returns and the ability to create a sustainable and values-led investment opportunity. In addition, well-run PBSA can achieve enhanced value from assets that are often undermanaged. We are excited to have MYS Student Living as an in-house provider of the highest-quality accommodation.”
Mathewson added: “Creating the MYS Student Living platform with abrdn harnesses two levels of expertise. Abrdn is one of the largest residential fund managers in Europe and MYS is a first mover in the new category of values-led student housing. Both abrdn and MYS are focused on delivering assets with best- in-class ESG credentials that fulfil the clear and growing needs of both students and universities. The ambition is to provide investors with strong and dependable returns while creating the user-friendly, sustainable, low-carbon student housing of the future.”
As one of the largest residential fund managers in Europe, abrdn currently has more than 200 residential properties across 11 countries and said PBSA represented a natural growth area for the business.
How MYS aims to be different
- Environmental – the carbon footprint of each resident will be measured by Proptech to encourage lower environmental impact. MYS will provide energy-efficient buildings with decarbonised heat and reduced embodied carbon, and using only renewable energy.
- Social – MYS aims to be a values-led business, where decisions benefit customers, employees and investors. MYS is a living-wage employer and will also offer the free use of amenity space to local community groups.
- Governance – MYS is targeting B-Corp status to meet high standards of performance, transparency and accountability. To achieve B-Corp status, MYS must demonstrate high social and environmental performance, make a legal commitment by changing the corporate governance structure to be accountable to all stakeholders and exhibit transparency, by allowing performance to be measured and publicly.
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