Russian-backed LetterOne is buying a £500m student housing portfolio, in a deal that will help to propel revenue in the sector to a record £2.5bn this quarter.
LetterOne, which was founded in 2013 as the international investment vehicle of the shareholders of Russia’s Alfa Group Consortium, is under offer to buy a 2,150-bed portfolio from Carlyle Group and Generation Estates.
The Pure Student Living portfolio comprises five London assets, including 805-bed Pure City on Goswell Road, EC1 (pictured).
It marks the first major Russian injection of cash into the UK housing student market, demonstrating its growing appeal.
Based on pending sales, including a deal for the £1.2bn Liberty Living 17,000-bed portfolio, student housing agents expect revenue in Q1 to reach in excess of £2.5bn.
The portfolio was put up for sale last September.
JLL is advising the vendor.
