Hines has acquired a £72m (€81.2m) student accommodation asset in Glasgow on behalf of its non-traded real estate investment trust.
The international real estate firm’s Hines Global Income Trust (HGIT) has bought the fully-let 607-bed operational student housing asset located on Kelvinhaugh Street from Bricks Capital.
Hines said the site, located a 10 minutes’ walk from the University of Glasgow, will now be managed by Aparto, Hines’ student accommodation platform.
The latest investment represents HGIT’s third investment in the asset class in the UK and Ireland following the acquisitions of Queens Court in Reading and Montrose in Dublin.
Hines said it is targeting a combination of new developments and acquisitions as it seeks to increase its presence in the purpose-built student accommodation market.
Jurriën de Koning, director of Hines UK, said: “The site is well-positioned to benefit from the University of Glasgow’s £1bn investment in its campus, as well as the continued popularity of Glasgow’s higher education institutions.
“The acquisition of high-quality existing student accommodation assets in top university locations will form an important part of our strategy as Hines looks to grow its UK & Ireland student portfolio of over 5,500 beds and a gross development value of circa £800m including pipeline.”
Peter Prickett, CEO of Bricks Capital said: “Our roll-out plan for the true student brand remains as strong as ever, and this deal allows the acceleration of our brand in key locations around the UK, significantly expanding our presence.”
Bricks Capital has four new developments opening in 2020, including a 706-bed scheme in Swansea, 398 beds in Birmingham, 402 in Salford and a further 315 in Glasgow.