Global real estate manager Heitman has added a 120-bed development to its UK student housing portfolio.
The $53bn (€54bn) asset manager said it has invested in the Hollis Building in Bath in a deal with London-based student housing developer Alumno.
Hollis Building is located to service both Bath Spa University and the University of Bath. The asset will be operated by UK’s largest independent student housing operator Homes for Students.
Caleb Mercer, Heitman’s managing director of European real estate investment, said: “The need for student-specific housing remains significant as demand for space continues to outpace supply. The resiliency of purpose-built student accommodation has been clearly evidenced over the past year.
“Demand for student housing remains intact and is expected to accelerate as the sector continues to benefit from steady occupancy gains, strong investor interest, and high barriers to entry.”
Gordon Black, Heitman’s senior managing director and global portfolio manager, said: “As we continue to construct our global portfolio against the background of a volatile market, we are focused on acquiring high-quality assets that provide robust portfolio risk diversification—including by region, property type, and demand driver.
“The investment in Bath fits that profile as student housing continues to attract delinked demand and the UK remains a pillar of higher education globally.”
David Campbell, founder and managing director of Alumno, said: “We are delighted to be working with Heitman again on this exciting new project and building on our solid relationship. The need for good quality, purpose-built student accommodation in the UK remains very high, with the University of Bath supporting the planning application for this scheme.”
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