Goldman Sachs has been picked as the preferred bidder for Knightsbridge Student Housing’s £500m Westbourne portfolio.
Estates Gazette understands that Goldman was given exclusivity on Thursday last week to buy the 12 assets, which total 5,867 beds. It is likely that Goldman will team up with asset manager Greystar, although the pair have yet to formally tie up.
National Pensions Service of Korea, advised by Europa Capital and Round Hill Capital, were also shortlisted to buy the portfolio.
The student accommodation market has become fiercely competitive over the past 18 months with a number of players looking to create platform businesses. Just this month Russian-backed Letter One bought Carlyle Group’s Pure Student Living business for £532m, Liberty Living was bought by the Canada Pension Plan Investment Board for £1.1bn and PSP alongside Greystar agreed to buy Round Hill’s Nido business for £600m.
Knightsbridge is backed by Oaktree Capital Management and run by chief executive Bob Crompton. While the portfolio Goldman is buying makes up the majority of its assets, it still controls a development pipeline of nearly 5,000 rooms.
The assets are: Dorchester House in Bournemouth, Neuadd Willis in Bangor, Magenta House and the Costume Store in London, Stephenson Building in Newcastle, Astor House in Plymouth, Studios 51 and The Penworks in Birmingham, The Pavilions and Hayes Wharf in Lincoln, Abacus in Brighton, The Castings in Huddersfield and Alice House in Oxford.
