Tristan Capital-managed opportunity fund European Property Investors Special Opportunities IV has invested £439m into Liverpool-headquartered developer-operator Downing as part of a multi-million-pound UK student housing joint venture.
European Property Investors Special Opportunities IV has acquired a 90% interest valued at £439m in the joint venture, which owns a 2,756-bed portfolio of six halls in some of the best university cities across the UK.
The joint venture has committed to forward purchase two more residences next year, including a 32-storey, 578-bed scheme in Vauxhall, SW8, taking the total number of beds to 3,644.
Downing will retain a 10% stake in the joint venture, which will acquire the eight assets in two tranches. Downing developed all six of the existing halls in the past two years and will deliver the two developments in Glasgow and London.
The fund investment will provide Downing with a strong platform for future growth. The company has an active development pipeline, with a number of student accommodation developments in key university cities across the country due to reach completion over the next five years.
The company tends to work in long-standing nomination agreements with leading universities, alongside a strong profile driven by deep networks in a number of international student markets including China, India, Canada and the USA.
Simon Garnett, finance director at Downing, said: “This partnership further establishes Downing as a major player in the student accommodation sector. Our market-leading portfolio and existing immediate pipeline of developments gives us a strong presence across the UK’s leading universities cities.
“This agreement provides Downing with the capital needed to continue to invest in and grow our student accommodation portfolio. We have a vibrant development pipeline – with key schemes due for completion across the UK’s most prestigious university cities. We look forward to continuing to bring best-in-class student developments to the market and remain highly optimistic about the significant potential in this asset class.”
European Property Investors Special Opportunities IV was advised by BLP, EY and Knight Frank.
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