UBS Asset Management’s Real Estate & Private Markets business has provided £64.7m in forward funding for a 367-bed, purpose-built student accommodation property in Redcliff Quarter, Bristol.
The deal is the sixth PBSA investment by UBS as part of its UK core real estate investment strategy.
Redcliffe Quarter is being developed by Madison Cairn and will be operated by Fresh Student Living.
Oliver Abram, portfolio manager at UBS Asset Management, said: “A key focus area for our UK core real estate strategy is to continue to increase our exposure to the PBSA sector, targeting leading Russell Group university cities across the UK. Bristol is one of the strongest student accommodation markets in the UK, with positive supply and demand dynamics and a limited development pipeline. This acquisition complements existing holdings within the portfolio, which have achieved consistently high occupancy levels, delivering strong income returns for the fund. Through development we are able to deliver a leading accommodation property with high-quality sustainability credentials to ensure that the asset is aligned to the fund’s ESG strategy.”
Aneil Handa, director at Madison Cairn, added: “This will be a market-leading product, underpinning our ability to unlock potential, enabling development of such an important and high-profile site, in one of the UK’s most attractive cities.”
TT&G Partners advised UBS.
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