Q Investment Partners and developer Soilbuild have launched a £200m UK purpose-built student accommodation build-to-core platform.
The joint venture is seeking to syndicate up to 45% equity with strategic LPs, of which around 50% of the assets have already been seeded.
The fund will initially be seeded by two prime development opportunities in York and Newcastle, which will add a total of 650 beds. Both assets will be operated by Prestige Student Living.
The UK PBSA partnership marks a significant step in QIP’s strategy to work with strategic, institutional partners to scale its specialist Global Residential Living platform across the UK, US, and Japan.
QIP currently manages a £150m portfolio of PBSA projects and has launched a Japan-focused $40m multi-family fund in a joint venture with Alyssa Partners.
Peter Young, chief executive and co-founder of QIP, said: “As integrated real estate businesses, QIP and Soilbuild share many of the same values and this partnership reaffirms QIP’s significant track record and expertise in the global residential living sector.
“The PBSA sector continues to be increasingly attractive to institutional investors. This partnership demonstrates our continued commitment to the sector and will see QIP leverage our existing platform scale to address the growing demand for high-quality student accommodation in the UK.
“The result is an attractive proposition for QIP, Soilbuild, and strategic LPs: a highly resilient and well-managed income base that translates into competitive risk-adjusted returns, stability, and growth.”
Lim Han Feng, director at Soilbuild, added: “This partnership is a continuation of Soilbuild’s strategy of developing purpose-built schemes across the residential and business space.
“QIP and Soilbuild have significant expertise in providing a full spectrum of real estate solutions, and through this strategic partnership with QIP, we are leading the way to build a scalable portfolio of UK PBSA assets to address the structural undersupply of quality student accommodation in the market.
“PBSA continues to be a non-cyclical asset class that demonstrates its resilience through its strong fundamentals.”
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