US alternative investment manager Ares Management Corporation (Ares) has made its European student housing debut with the acquisition of two student accommodation assets providing a total of 1,359 beds in the UK in joint venture with resi developer-investor Generation Partners (Generation).
The assets, located in the cities of Exeter and Cardiff in the UK, were bought for £157.5 mln (€183 mln).
This new initiative by Ares and Generation is part of a targeted residential investment strategy that will focus on Purpose-Built Student Accommodation (PBSA) assets in the UK.
The two assets which were recently completed by Mace Developments provide high quality buildings with a wide range of room types and an excellent provision of internal and external amenity spaces in two very strong locations.
‘We are excited to partner with the Generation team on these attractive student assets and we look forward to identifying additional opportunities for further growth in this sector in the UK market,’ said Wilson Lamont, partner and co-head of European Real Estate Equity in the Ares Real Estate Group.
Alan Artus, co-founder of Generation commented, ‘Having been a major participant in the PBSA sector for the last two decades, including the creation of the Nido and Pure Student Living platforms, we look forward to working with the Ares team to assemble a significant portfolio focused on top tier cities and high-quality buildings.’
Savills Capital Advisors acted as Financial Advisor to Ares and Generation.