Singapore-based Centurion Corporation is planning to boost its UK PBSA portfolio with the launch of a second student accommodation private fund.
Centurion is seeking potential investors to fund plans to “aggressively grow” its UK offering over the next three years, operating under its “dwell Student Living” brand. It has not disclosed the size of the fund or the amount it plans to raise.
The company has increased its PBSA beds under management to 5,475 in 2018, from 456 in 2014. It operates 2,543 beds in the UK, accounting for nearly 50% of its total student housing portfolio.
The group’s first fund, the Centurion US Student Accommodation Fund, raised $89.5m (£69m) after it launched in November 2017. It has acquired six PBSA properties across five states in the US.
The dwell Student Living brand, which operates in Manchester, Liverpool, Bristol and Newcastle, posted an occupancy rate of circa 93% across its UK student portfolio this year.
In July, Centurion bought 121 Princess Street, in central Manchester, for £18.7m. The acquisition was its ninth asset in the UK.
Kong Chee Min, chief executive of Centurion, said: “We continue to look for strongly performing UK PBSA assets that we can add value to through our dwell Student Living brand.
“In the coming years we plan to considerably grow our portfolio in the UK, a market which has performed well and is underpinned by a world-class education system.
“The launch of dwell has allowed Centurion to take a more holistic approach to growing its management capabilities in the student accommodation business. With the launch of a second student fund, we hope to build our exposure to existing, as well as emerging, key education hubs in Europe and Asia.”
Drawing in overseas investment
James Pullan, global head of student property at Knight Frank, observed: “UK PBSA is proving particularly attractive for Singapore-based investors, with appetite driven by the sector’s robust demand/supply characteristics and ongoing structural undersupply.
“Economies of scale suit the larger investor; it is therefore a strong investment strategy to seek scale and develop the platform.”
Recent data published by UCAS highlighted that the number of EU students accepting places at UK institutions for the 2018/19 academic year has increased by 3%, while non-EU international acceptances are up by 4%.
Rental performance across the UK’s PBSA sector showed rents grew by 2.3% for the 2018/19 academic year, according to the latest findings by Knight Frank. Schemes owned by occupiers with operational stock of more than 10,000 beds in multiple markets reported rental growth of more than 3% on average.
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