A consortium of Russian billionaires is under offer to buy the Pure portfolio from Carlyle Group and Generation Estates, in a deal that could push student accommodation investment to a record £2.5bn this quarter.
LetterOne, as the Russian-backed vehicle is known, has agreed to pay almost £535m for the 2,150-bed London portfolio.
JLL was guiding £500m for the portfolio when it was brought to market last October.
Based on pending sales, including Canadian pension fund CPPIB’s £1.1bn purchase of Brandeaux’s Liberty Living 17,700-bed portfolio, and the £450m sale of Knightsbridge Student Housing stock, experts expect revenue in the sector to surpass £2.5bn by the end of Q1.
In comparison, UK turnover for the whole of 2014 was £2.5bn, according to Savills.
International and domestic parties continue to be attracted to the sector, encouraged by strong university enrolments and robust occupancy levels.
LetterOne was founded in 2013 as the international investment vehicle of the shareholders of Russia’s Alfa Group Consortium.
