Europa Generation, a joint venture between pan-European investment manager Europa Capital and Generation Student, has raised around £100 mln (€117 mln) at the first close of its UK Student Accommodation Fund.
The partnership aims to secure around £300 mln of funding to invest in extending its portfolio, which currently comprises 1,561 beds in Bath, Newcastle, Sheffield, Aberdeen and Bournemouth.
The fund currently has £180 mln of assets under management. Another 144 units in Oxford are due to come on stream in the summer.
Altogether Europa Capital and Generation have more than 12,000 bed spaces across PRS and student accommodation in UK and European locations. The partners aim to exploit student accommodation's resilient performance, strong rental growth and the fact that demand is running significantly ahead of supply, partly because of the growing numbers of international students.
Tim Turnbull, partner at Europa Generation, said: 'The opportunities for institutional investors to access the PBSA market in collective vehicles are limited. Therefore, our ambition is to scale the Europa Generation platform, broaden our investor base and grow the student fund’s portfolio throughout the United Kingdom.'