Malaysian life insurer Kumpulan Wang Persaraan (KWAP) has bought a portfolio of two newly developed student accommodation assets totalling 360 beds from Hong Kong based IP Investment Management and Maven Capital Partners.
The deal was struck by KWAP in partnership with 90 North Real Estate Partners (90 North) and marks the insurer's first acquisition of a student housing portfolio in the UK.
'I am excited by this exceptional opportunity to invest in the UK’s attractive student accommodation sector,' said Dato’ Wan Kamaruzaman Bin Wan Ahmad, KWAP's CEO.
'The UK is a global leader in higher education, attracting students from Malaysia and around the world. Acquiring these assets from IPIM and Maven meets KWAP real estate investment objectives for targeting strategic, diversified portfolios in foreign markets with a focus on revenue generating portfolios.'
Both purpose-built assets are fully operational and 100% pre-let for the 2018/19 academic year. Mill House in Edinburgh was sold for £25.1 mln or £97.8k per bed which represented a net initial yield of 5.84%. 800 Bristol Road in Birmingham (pictured) was sold for £14.6m or £141.9k per bed which represented a net initial yield of 5.69%.
'KWAP’s acquisition shows the ongoing institutional demand for high quality operational assets such as the Mill House and 800 Bristol Road. IPIM will continue to work with Maven to develop UK PBSA schemes following this successful exit of our first developments together,' said Selina Williams, executive director at IPIM.
'The two properties forming part of this deal are low-risk, incoming generating assets, that have been developed by the current owner IPIM and the asset manager, Maven,' said Philip Churchill, founder and managing partner at 90 North.
'We are delighted with the return on investment these high quality student properties have achieved for investors,' added Andrew Whiteley, investment director at Maven.
Bidwells acted for the vendor while both Robert Irving Burns and MacLaren & Partners acted for the buyer.