KKR and Round Hill Capital have agreed a circa £180m forward purchase of a portfolio of four PBSA schemes from Watkin Jones.
It marks the first student housing deal for KKR and Round Hill through their joint venture in the UK. The sites are in London, Glasgow and Coventry.
The scheme in Coventry has 778 beds across 17 storeys on Whitefriars Lane, adjacent to the Coventry University campus. It is expected to complete in time for the 2020/21 academic year.
Meanwhile, the Glasgow site has 401 beds across eight storeys on Kyle Street, and is set to complete in time for the 2019/20 academic year.
The deal also includes two London schemes: 353 beds across nine and 17 storeys on Forest Road, Walthamstow; and 283 beds across 17 storeys on Albion Way, Wembley. Both will be completed in time for the 2020/21 academic year.
As part of the transaction, the jv has also exchanged an option agreement to forward-fund a 348-bed PBSA scheme in Bristol, subject to full planning consent.
The deal follows the jv’s two acquisitions in the Netherlands in recent months – of a housing development, comprising 577 student beds and 173 residential apartments, and a 698-bed PBSA development site.
The buildings will be managed by Nido Student, Round Hill’s platform and brand for European student accommodation. KKR and Round Hill secured financing for the schemes from Wells Fargo.
KKR’s investment was made through its Real Estate Partners Europe fund.
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