Curlew Capital and CBRE Global Multi Manager (CBRE GMM) have launched the Curlew Student Trust (CST), a new vehicle that will invest in UK student accommodation.
Curlew Capital and CBRE Global Multi Manager (CBRE GMM) have launched the Curlew Student Trust (CST), a new vehicle that will invest in UK student accommodation.
CST has been established as a result of investment by UK and global clients of CBRE GMM alongside Curlew and key stakeholders. CBRE GMM has initially committed £40 mln (€48 mln) to the venture.
CST will be managed by Curlew Capital, led by Paul Oliver, former joint CEO of Teesland. Oliver established Curlew in 2011 to play an active role in the growth of ‘alternative’ property investment. Operational and property management will be provided by Fresh Student Living (FSL), led by Rebecca Hopewell.
CBRE Global Multi Manager (GMM) is the independent multi manager division of CBRE Global Investors. GMM had $11.5 bn in assets under management at end-September 2013, invested in primary funds, club deals, secondaries, joint ventures and co-investments.
CST will invest in prime, purpose-built student accommodation throughout the UK. The acquisition strategy is focused on the top 50 UK universities as ranked by the Russell Group, supplemented by investment opportunities where Curlew sees strong sustainable returns. CST will target superior returns by forward-funding new developments in locations experiencing strong demand from students and through using FSL's managers to help deliver strong income returns.
CST has a target size of £250 mln and will use the initial equity commitments to acquire a £63 mln seed portfolio, comprising 1,091 beds in three schemes currently being developed by Watkin Jones Group, a developer of purpose-built student accommodation in the UK. The assets are situated in Sheffield, Swansea, and Birmingham.
The schemes in Sheffield and Swansea are due for delivery in time for the 2014-15 academic year while the Birmingham scheme will welcome students in 2015-16. The assets will provide a mixture of cluster and studio bedrooms.
Paul Oliver, CEO of Curlew Capital, said: 'The launch of the Curlew Student Trust demonstrates the demand from institutional investors for a value-add approach to investing in this thriving alternative investment sector. We are excited by the quality of the specialist team we have assembled, providing investors with access to individuals with a superior track record in the investment, development and operational management of prime purpose-built student accommodation assets across the UK.'