CPPIB makes £1.1bn UK student housing debut

The Canada Pension Plan Investment Board (CPPIB) has made its first investment in the UK student housing sector.

The Canadian pension plan said it paid £1.1bn (€1.5bn) for the Liberty Living brand and a management platform from the Brandeaux Student Accommodation Fund.

CPPIB, advised by Macquarie Capital, bought the portfolio following an auction process.

Andrea Orlandi, CPPIB’s head of real estate investments in Europe, said the student housing sector is expected to see continued demand for “well-located and well-managed student residences”.

CPPIB will create a single company under the Liberty Living Management Two platform.

“As a long-term investor, this is an exciting investment for CPPIB and an ideal platform through which we can build further scale,” Orlandi said.

Liberty Living holds 40 student residences in 17 UK university towns and cities.

The Carlyle Group recently sold a London student housing platform for £532m.

The investment manager sold its Pure Student Living business to LetterOne Treasury Services, a privately owned Luxembourg-based vehicle.

Previous UK media reports said three Russian billionaires were last month expected to buy the portfolio.