Singaporean investor QIP has launched a £30m fund raise to take advantage of student accommodation opportunities in the economic recovery from the pandemic.
The fund is targeting a net return of 13-15% per annum over a four-year investment period.
Through a series of strategic joint ventures with local partners, it aims to develop a portfolio of assets under one fund in up to 15 markets.
It will allocate 80% of finance to buy, develop and stabilise schemes and has a pipeline of five assets in London, Edinburgh (pictured) and Bath.
The remaining 20% will seek to take advantage of market distress, targeting land purchases, development conversions and redevelopment of existing PBSA.
Chief executive Peter Young said: “The strong, long-term drivers of the UK PBSA are widely accepted and investor sentiment for the sector remains strong despite the Covid-19 pandemic, and will likely improve as UK universities commence operations for the September 2020 academic year.
“Capitalising on these opportunities will require nimble, ready capital – and we are confident in our ability to execute once the assets are ready to be transacted.”
QIP has a portfolio of 14 assets comprising 2,455 beds across the UK. It invests its own capital contributing up to 10% of each investment, delivering up to 20% IRR net returns.
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