Greystar Real Estate Partners has become the second US party to buy a chunk of the collapsed Opal Property Group.
The South Carolina-based firm, which is one of the US’s largest student housing providers, is making its UK debut with the purchase of the 7,100-bed Athena portfolio.
Backed by Goldman Sachs and advised by Macquarie and Jones Lang LaSalle, it has paid £300m for the 21 buildings. The assets were marketed by Ernst & Young Real Estate Corporate Finance on behalf of Royal Bank of Scotland.
Fergal O’Reilly, director at E&Y Real Estate Corporate Finance, said: “We generated a significant number of highly credible bids, ultimately resulting in the exchange of contracts for one of the largest single portfolios ever transacted in this sector, and with a new entrant to the UK market.”
Stuart Wall’s Opal, which was one of the UK’s largest student accommodation providers, with 20,000 beds, collapsed after failing to agree a refinancing deal for nearly £900m of debt with several lenders ahead of a 1 March deadline.
Greystar is one of a handful of US parties that have been circling the Opal properties, attracted by the opportunity to make a big entrance to the market with a single buy.
As revealed by Estates Gazette in July, Greystar lost out in its attempt to buy a 2,239-bed Opal portfolio to New York-based rival Avenue Capital Group (27 July, p25).
Other US parties trying to buy the remainder of the portfolio include Harrison Street and Campus Crest Communities.
Greystar manages 215,000 student residences across the US. Its investment management division has $600m (£391m) under management in discretionary and multi-investor funds.
The Athena portfolio includes properties in Huddersfield, West Yorkshire, Leicester and Manchester.
Around 10,000 Opal beds are still for sale via various packages.
joanna.bourke@estatesgazette.com
