Rental housing specialist Greystar Real Estate Partners has agreed to acquire four purpose-built student accommodation (PBSA) buildings and a build-to-rent (BTR) asset for £388 mln (€464 mln) from developer Downing.
The assets were acquired on behalf of a managed fund in an open market bidding process. The acquisition is subject to regulatory approvals.
The four PBSA assets comprise a total of 1,807 beds in the university cities of London, Manchester and Coventry. The BTR asset is also located in Coventry and comprises 100 homes, which Greystar will operate as young professional (under-25) housing.
Both the PBSA and BTR assets are currently operational with strong occupancy, boasting high-quality amenities including gyms, cinema rooms and terraces.
Greystar will deliver additional value through the implementation of its vertically integrated platform to drive leasing, make asset improvements and implement other capital projects, such as the creation of new amenities.
Ben Mowbray, senior director – UK Investment, Greystar, said: 'Our growth strategy in the UK is underpinned by strong, long-term market fundamentals.
'With the expectation that the UK’s 18-year-old population is set to grow by 2.1% per annum until 2030, Greystar is well positioned to capitalise on increasing demand for high-quality student accommodation.
'Meanwhile, we will be introducing young professional housing to our portfolio in the UK for the first time, which has been very successful in our other European markets.'
George Downing, founder of Downing, said: 'We invested heavily to develop these sites to the highest possible standard and are extremely proud of what we have achieved.
'This announcement marks an exciting milestone for our business. With over £1 bn worth of developments in the pipeline at sites across the UK, the agreement we have reached with Greystar will allow us to look for opportunities to grow our development programme further.'
New Greystar brand
While the two London assets in Lambeth and North Acton will be added to the Chapter portfolio, the assets in Manchester and Coventry will operate under a new pan-European student and young professional accommodation brand unveiled for the first time by Greystar as Canvas.
The new brand has already been applied to the assets acquired from Nido last year – namely five assets in the UK located in Bristol, Glasgow, Coventry and London (Walthamstow and Wembley) and one in Utrecht, the Netherlands.
Developed in-house by the Greystar marketing, brand and insights team, Canvas aims to support people during a significant period of their life by providing a safe and sustainable living environment.
Melody Mijnen, senior director – marketing, brand and insights, Greystar, said: 'With the launch of our Canvas brand, we are pledging to work together with our residents to create a more sustainable future, as we believe what we do today affects our tomorrow.
'It is envisaged that as the footprint of the brand grows across Europe that Canvas residents will be able to benefit from short stays at other buildings within the portfolio giving them easy access to a range of cities.'
Chapter currently contains 11 London student accommodation buildings (5,642 beds) in Zone 1 and 2 locations including Spitalfields, South Bank, Old Street and Highbury. The addition of the two new assets will add a further 630 beds to the portfolio.