CBRE GIP sells 75% of CST, launches second student housing fund

CBRE Global Investment Partners (GIP) has sold 75% of the Curlew Student Trust (CST) portfolio and has set up a second fund.

The assets were acquired by purpose-built student accommodation provider Student Roost for an undisclosed sum.  

CBRE GIP said the 15 student accommodation assets, which comprises 5,407 beds, in the sale portfolio are located in 12 university cities across the UK including London, Birmingham, Bath, Durham and Sheffield. 

The sale also includes land in Swansea that is consented for the development of student accommodation.

CST was launched in 2013 as a seven year fund, with three seed assets, backed by clients of CBRE GIP and managed by Curlew Alternative Asset Management.

CBRE GIP said the fund’s strategy to acquire and forward fund purpose built student accommodation has been successful with CST seeing significant growth, expanding to 20 assets with a further five assets due to be completed for the start of the 2018/19 academic year.

”Given the strong performance of the fund and the fulfilment of its objectives to date, a decision to sell approximately 75% of the portfolio was taken,” CBRE GIP said.

CST is retaining around 25% of its total portfolio and this will continue to be managed by Curlew. 

”Furthermore, following the success of CST, CBRE GIP and Curlew have launched a second venture in the UK student accommodation sector, Curlew Student Trust 2 (CST 2),” it said.

CST 2 will follow a similar strategy to its predecessor fund and already has two seed assets of 917 beds under offer for delivery in 2020. 

The follow-on fund also has an active pipeline of opportunities, CBRE GIP said.

Alex Bignell, the region head of UK at CBRE GIP said: “It is very satisfying to have established a successful programmatic venture with a leading student operator, Curlew, in a sector of the market where CBRE GIP identified a compelling investment opportunity. 

“We are very pleased with the returns generated for our clients to date. CBRE GIP and Curlew see further opportunities in the sector and look forward to working on these together.”   

Paul Oliver, the CEO of Curlew Alternative Asset Management, said: “The Curlew team are delighted to have crystalized this exceptional performance for our investors and look forward to the completion of the retained element of the portfolio and the success of the newly launched second fund.”