Allianz Real Estate has partnered with Greystar and PSP Investments to grow its Chapter UK student accommodation business.
As revealed by EG in March, the German insurer is entering the sector in the UK for the first time and will take a circa 40% stake in the portfolio for £350m.
The partners plan to double the size of the portfolio to 10,000 beds within five years.
The portfolio currently comprises 10 central London locations, including Aldgate, Islington, King’s Cross, South Bank and Spitalfields. Chapter White City in west London will open in September 2018.
“This joint venture with Greystar and PSP Investments underlines our strategic commitment to scale up our global allocation to high-quality student accommodation in established markets”, said Olivier Téran, CIO of Allianz Real Estate. “We look forward to playing a key role in supporting the partnership’s ambitious expansion plans and to making additional investments in the sector across the board.
“This transaction is particularly important for Allianz as it also marks our largest equity investment into the UK, which has become an increasing focus for us across the capital structure. We will continue to explore opportunities to increase our footprint in the UK as part of our global diversification strategy.”
Allianz was advised by Savills. Greystar and PSP were advised by Eastdil Secured.
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