Blackstone has acquired iQ Student Accommodation from Goldman Sachs and Wellcome for £4.66bn in a deal hailed as the largest ever private real estate transaction in the UK.
The company owns and manages more than 28,000 beds across the UK, with a development pipeline of more than 4,000 beds.
It is the largest owner of student accommodation in London, Manchester, Leeds, Sheffield, Edinburgh and Birmingham.
James Seppala, head of real estate Europe at Blackstone, said: “This acquisition is a continuation of our strategy to invest in high-quality assets and businesses in the UK and testament to our long-term belief in the UK.
“British higher education is globally renowned and we are delighted to invest meaningful capital to support iQ’s further growth and continue to deliver the highest quality accommodation for students across the country.”
Rob Roger, chief executive of iQ Student Accommodation, added: “With student numbers in the UK at an all-time high, and growth set to continue in the coming years, there has never been a more exciting time to be a leading player in the student accommodation sector.”
iQ was formed in 2006 with Wellcome as one of the founding investors. It merged with Goldman Sachs’ student business in 2016.
Goldman Sachs International, Morgan Stanley and Eastdil Secured advised the sellers. Bank of America and Citi provided financial advice to Blackstone, with Savills as property adviser.
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