Transactions in the student housing market this quarter are on track to exceed the whole of 2013’s total of £2bn, JLL has forecast.
As at the end of the third quarter, £220m of stock was under offer, and £360m was being marketed. The agent expects £2bn of assets to go under offer before the end of the year.
In the first three quarters of 2014, £1.5bn of sales had completed. Deals included Canadian investor Realstar Group buying 164-bed Canto Court, E1, from Unite for close to £40m, and BlackRock UK Property Fund paying £40m for the 492-bed Printworks in Devon from Moorfield Real Estate Fund II.
Philip Hillman, head of student housing investment at JLL, said: “We are predicting a flurry of deals to near completion before the year draws to a close, with strong university enrolments and robust occupancy levels across the sector proving to be key factors.”
Hillman added that he expects more activity in the regions.
JLL has calculated that land values for well-located sites have risen by 25% this year with provincial yields hardening for well-located, good-quality assets.
joanna.bourke@estatesgazette.com
