European real estate investment manager ActivumSG plans to develop over £500m (€575.1m) worth of UK student housing assets for a new platform.
ActivumSG has teamed up with local student housing operator The Mansion Group Holdings (TMGH) to acquire and modernise purpose-built student accommodation (PBSA) assets.
The newly created value-add platform has acquired seven assets with a gross development value of over £100m. The 972-bed seed portfolio — located in Manchester, Edinburgh, Exeter and Cardiff – has been acquired through two separate transactions.
ActivumSG said the venture is also in talks to buy “numerous additional properties over the coming months”.
All assets will be managed by TMGH’s operating brand, Mansion Student.
Saul Goldstein, founder and CEO, ActivumSG, said: “The UK student accommodation sector is uniquely positioned to benefit from a positive realignment of people and capital flows into Europe, with this confluence making the market a highly appealing destination for international investment.
“This new platform will benefit from our deep, multi-layered expertise in the European accommodation sectors, including both living and hospitality-focused real estate.
“We believe now is an excellent time to be buying assets with strong fundamentals in good locations where we can unlock further potential by improving operational performance and making sustainability-related upgrades. Our initial acquisitions and plans to scale the platform further are proof of this conviction.”
James de Lusignan, managing director, UK, ActivumSG, said: “The UK student accommodation market has emerged as a preferred geographic-and-sector combination for institutional investors, with future growth underpinned by the undersupply of student beds relative to anticipated future demand.
“The large share of pre-2012 assets in use combined with challenges related to viability in developing new assets, creates a huge opportunity in terms of repositioning existing stock. This presents an attractive avenue through which experienced value-add investment managers like us can create a differentiated investment proposition.
“Our strategy will see us implement upgrades to standing assets to align them with modern-day building and sustainability standards, while providing attainably priced accommodation for students.”
Shankar Ramanathan, founder and CEO, The Mansion Group Holdings, said: “ActivumSG’s proven track record in European living real estate across both corporate and direct investments will prove immensely beneficial as we look to scale the seed portfolio into a market-leading platform, acquiring, refurbishing/repositioning and aggregating well-located existing PBSA assets.
“Our partnership has been structured to incentivise genuine collaboration and create a true alignment of interests, which we believe will be vital to the long-term success of the platform.”
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