Dutch pension fund PGGM is favourite to be named as the new majority owner of one of the UK’s largest university campus developers.
Barclays Capital, the owner of University Partnerships Programme, which has a £1bn-plus portfolio, is close to selling the company to PGGM, it is understood.
A minority percentage of UPP would remain in the hands of the operating company, and a deal with PGGM is expected to be finalised in October.
PGGM is the frontrunner from a shortlist of four investors, which also included French construction giant Bouygues, Australian student accommodation group Campus Living and Australia’s Macquarie Group.
UPP has22,000 rooms across the UK and has recently secured deals to provide student accommodation in Nottingham and Reading.
James Pullen, head of student housing at knight Frank, commented: “Universities are likely to dispose of £500m worth of student accommodation over the next three to five years. The market conditions are perfect for any private sector provider that wants to work with universities and student accommodation.”
UPP is advised by Jones Lang LaSalle and UBS.
joanna.bourke@estatesgazette.com
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