Singapore-based property investment group Metro Holdings has teamed up with two other companies to invest up to £150m (€164m) in student accommodation assets in the UK.

Metro, Lee Kim Tah (LKT) and Woh Hup have established Paideia Capital UK Trust, a purpose-built student accommodation (PBSA) fund.

Paideia Capital raised £60m at its first close, which will potentially fund up to £150m in acquisitions. Metro said its intention was to bring new investors into the fund in the future.

The fund is being seeded with a newly-constructed 210-bed building, located just outside the University of Warwick, acquired for £21.5m.

Metro chairman, Winston Choo, said the acquisition marked Metro’s first collaboration with LKT, a diversified property firm, and Woh Hup, a Singaporean contractor and civil engineering entity.

Metro’s group chief executive officer, Yip Hoong Mun, said Metro would work with its partners to leverage the new platform to grow PBSA’s portfolio across England, Scotland, Wales and Northern Ireland.

Yip said the British market offered “promising prospects”, given resilience in demand for quality higher education.

Metro first entered the UK market in 2014, when it bought a 25% interest in two residential development land sites in Manchester.

Since then, it has made three acquisitions, including a 50% holding in an office development land site in Sheffield, and a freehold office property at 5 Chancery Lane, London.

LKT has been a long-term partner of Metro in various projects, including 5 Chancery Lane, London, and two residential projects in Jakarta.

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