US asset management giant BlackRock has acquired a student accommodation scheme in the UK city of Exeter from Moorfield Real Estate Fund II (MREFII) for £40 mln (€50 mln).
US asset management giant BlackRock has acquired a student accommodation scheme in the UK city of Exeter from Moorfield Real Estate Fund II (MREFII) for £40 mln (€50 mln).
The 492-bed scheme, known as The Printworks, is earmarked for BlackRock's UK Property Fund. It is located close to Exeter University’s campus and is one of the largest private purpose-built schemes in the city.
MREFII purchased the former printing site in 2011 and subsequently secured planning consent for its change of use. The redeveloped scheme opened in 2013 when 100% occupancy was achieved.
Commenting on the disposal on behalf of MREFII, Charles Ferguson Davie, CIO of Moorfield, said: 'We identified the student market in Exeter as having attractive supply and demand dynamics and we are proud to have developed such a successful scheme that is so popular with the students. We had expected to hold the investment for longer but the off market approach from BlackRock resulted in an early realisation of our business plan.'
Moorfield has now developed and operated some 5,000 student beds and will continue to look for investment opportunities in the sector, he added.
In the last 12 months BlackRock has significantly added to its student accommodation portfolio, purchasing over £100 mln of student accommodation investments. 'This prime asset has a strong letting track record and is the dominant scheme in the local market. We believe that acquiring this best-in-class scheme will enhance returns for our clients,' added Paul Tebbit, director of the BlackRock UK Property Fund.
The BlackRock UK Property Fund was advised by Savills and represented by Berwin Leighton Paisner, MREFII was represented by Osborne Clarke.
