Round Hill Capital has pulled out of a proposed £340m deal to buy a student accommodation portfolio from Student Castle.
The investor was in advanced discussions with Carphone Warehouse founder Sir Charles Dunstone and the retailer’s former chief executive Roger Taylor to buy the assets.
Negotiations for the 3,000-bed portfolio have now begun with Liberty Living, backed by new owner the Canadian Pension Plan Investment Board, which had also been shortlisted. Europa Capital, which was an initial shortlisted underbidder for the portfolio, is not in negotiations with the seller.
It is expected that the sale will hit a yield as low as 4.5%.
Round Hill sold the bulk of its 2,375-bed Nido portfolio to Greystar and PSP Investments for £600m earlier this year.
Round Hill still owns one student accommodation scheme in West Hampstead, NW6, as well as the Nido brand.
Philip Hillman, lead director of student housing at JLL, said: “The players that have already made their move into the sector have a big weight of capital behind them, and this would be a strategic addition.”
