Canada Pension Plan Investment Board (CPPIB) is expanding Liberty Living, its UK student bed platform, into continental Europe by a €460 mln acquisition from US private equity firm Blackstone.
The Union State portfolio, being sold by funds managed by Blackstone, consists of 12 purpose-built student accommodation residences in 12 university cities across the UK, Germany and Spain. There is also a potential development site in London.
Announcing the deal on 23 December Liberty Living said the portfolio would enhance its position in a number of key cities in the UK, and provide an entry into continental Europe.
'The acquisition of these residences is the latest step in Liberty Living’s strategy to grow through the acquisition of high-quality, developed assets that complement our existing portfolio,' said David Shearer, executive chairman of Liberty Living. 'The opportunity to acquire these residences is a coherent further step in growing our branded, service-driven business, allowing us to strengthen our position in key markets.'
The newly acquired assets will be rebranded as Liberty Living buildings and incorporated into Liberty Living, which currently owns and operates more than 19,000 beds in the UK.
The transaction, which is subject to customary closing conditions, will be funded at completion via CPPIB’s wholly owned subsidiary, CPPIB Liberty Living.
Liberty Living is one of the largest student accommodation providers in the UK. Established in 2000, it was acquired by CPPIB Liberty Living in March 2015 as a vehicle for further expansion in this asset class. Including the Union State Portfolio acquisition, Liberty Living will own and manage 25,000 beds in 61 residences across 23 cities.
