PGIM Real Estate has acquired a portfolio of six UK student properties from Unite Group.
The real estate manager has invested an unspecified amount on behalf of its European core-plus strategy to buy the purpose-built student accommodation (PBSA) properties, comprising 3,000 beds in Birmingham, Cardiff, Leicester, Liverpool, Nottingham and Sheffield.
Tobias Waldschmidt, senior portfolio manager of European core-plus strategy at PGIM Real Estate, said: “In the current market environment, it’s rare to find a stabilised portfolio with high-quality yielding assets located in key regional cities.
“We believe the UK PBSA sector has strong underlying fundamentals as demand for student housing is only set to increase with more students applying for university.”
PGIM said it will embark on a refurbishment programme for the portfolio to help modernise the accommodations.
PGIM said Generation Partners will act as the asset and development manager and its operational management arm, Now Student Living, will be retained as the property manager.
Alan Artus, CEO of Generation Partners, said: “Generation is excited to be working in partnership with PGIM Real Estate on this portfolio in conjunction with our recently established operational management arm, Now Student Living.
“The opportunity to upgrade these assets to provide high quality PBSA whilst still appealing to a broad student demographic is an exciting challenge and we look forward to working with PGIM to deliver our joint objectives.”
Paul Watson, co-founder and managing director of Now Student Living, said: “This portfolio represents a selection of well located, well provisioned PBSA residences that are ideally suited to serve a broad range of domestic and international students looking for affordable, well managed accommodation throughout their time studying in leading University cities.”
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