Arlington Investors has bought the operating portfolio of UK student accommodation provider Study Inn for £135m in a move than pushes Arlington’s student portfolio beyond the 10,000-bed mark.
It bought 10 sites from Study Inn, spanning 1,494 rooms in Coventry, Nottingham, Sheffield and Cambridge.
Arlington’s total investment in the sector now amounts to more than £750m.
The acquisition was partly financed by a 38-year bond, the fifth long-dated bond to be issued by Arlington, and was fully subscribed by funds managed by Aberdeen Standard Investments.
The balance of the debt was provided by MetLife.
Arlington Advisors managing director Sean McKeown said: “The Study Inn service model adds a strong alternate product to the Arlington portfolio and shows how students can receive exceptional service at a sensible price in Russell Group cities where demand continues to grow.”
Study Inn will continue to operate the assets for Arlington under the Study Inn Brand, with the intention of rolling out the brand in other UK cities.
Study Inn co-founder Eddie Jefferson said: “Collaboration on this transaction has released significant funds for us to invest in our second portfolio, which is already under way, with a 320-room scheme in Bristol due to open in September 2018.”
Arlington was advised by Grant Thornton. Study Inn was advised by Knight Frank, Savills and BDO.
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