Brookfield has bought a 619-bed student housing portfolio in the UK from IP Investment Management and Glenmore for £94m (€109.4m).
Brookfield acquired the Trium Portfolio of purpose-built student accommodation (PBSA) on behalf of one of its private real estate funds. The deal was brokered by Knight Frank.
The Trium Portfolio consists of Duresme Court, West Gate and Stanley Studios assets located in Durham, Exeter, and Southampton.
Michael Fuller, managing director and head of Brookfield’s European core-plus programme, said: “The Trium Portfolio represents an attractive entry into student housing for our European core-plus strategy. The UK student housing market has remained resilient throughout the cycle, and these assets are well-positioned to benefit from continued strong demand for post-secondary qualifications from UK, universities, and a shortage of high-quality PBSA facilities.
“Leveraging our experience of owning and operating PBSA businesses, the portfolio will serve as a foundation for further acquisitions in UK cities with high-quality institutions.”
Selina Williams, executive director at IPIM said: “The sale represents another profitable exit for our investors as we look to continue our strategy of developing institutional-quality PBSA in strong locations, before targeting an exit to long-term investors.
“We remain highly positive on the outlook for the UK PBSA sector which despite the challenges of the pandemic has again demonstrated its resilient characteristics.”
Daniel Rubin, managing director of Glenmore Property, said: “Stanley Studios, Southampton has proven to be an excellent investment for Glenmore. We are delighted that the property achieved 100% occupancy in its first year with fantastic feedback from the students living there.
“We are equally delighted to have successfully sold the property on to Brookfield. We believe the outlook for the UK PBSA sector remains compelling and we look forward to extending our activities in this exciting market.”
Maven Capital Partners UK acted as the onshore asset manager on behalf of both IPIM and Glenmore while Homes for Student’s Prestige Student Living brand and CRM Students will continue as student operators for the portfolio.
Andrew Whiteley, partner at Maven said: “The sale of Trium Portfolio is an excellent outcome for all parties and we are absolutely delighted with the returns that we have achieved for investors.”
Rachel Pengilley, partner at Knight Frank’s student property team said: “The Trium Portfolio comprises three best-in-class schemes with exceptional amenity provision. Each of the properties occupies a prime micro-location within its respective student market and the portfolio has attracted much investor interest.
”We’re delighted to have brokered this significant deal between IPIM, Maven, Glenmore, and Brookfield.”
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