Singapore’s sovereign wealth fund GIC is buying a 7,150-bedroom student housing portfolio from Oaktree Asset Management for £344m.
GIC, in partnership with GSA, is buying both the existing assets and development pipeline of the student accommodation portfolio from the US private equity firm.
The transaction is the UK’s largest student accommodation deal so far this year. The portfolio has been built over the past three years and includes 3,634 operational beds across nine purpose-built student accommodation properties located in Liverpool, Bristol, London, Edinburgh, Cardiff and Southampton. The deal also includes a pipeline of 3,516 beds in five cities: Plymouth, Portsmouth, Birmingham, Bournemouth and Cambridge, which GSA will aim to complete within the next 30 months.
Separately, GSA has acquired the Student Housing Company from Threesixty Developments. Its properties are fully let for the 2016/17 academic year on a mix of direct student lets and university nomination agreements. GSA will take over the full operational management of the portfolio with immediate effect.
Nicholas Porter, founder and chairman of GSA, said: “I am very pleased to renew a longstanding relationship with GIC and announce our partnership. This top quality portfolio will give GSA a stronger foothold in the UK market, where the high demand for university places continues to drive the need for well-managed, purpose-built accommodation. The Student Housing Company brand will come into the GSA family, alongside our Asian and European student brand Uninest, allowing us to pioneer the management of multiple brands under one umbrella.”
Madeleine Cosgrave, regional head, Europe, at GIC Real Estate, said: “GIC is pleased to partner GSA, which is among the leading developers and operators of student housing globally. The high-quality assets are located close to university campuses and city centres. As a long-term value investor, we believe student accommodation will be a sector that continues to deliver steady rental growth and resilient income returns amidst a challenging, low-yield environment.”
Nabarro and PwC advised GSA; JLL acted for Oaktree.
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