German investor DWS has purchased a portfolio of eight student housing assets in the UK for £600 mln (€646.8 mln).
The asset management arm of Deutsche Bank acquired the properties from their developer, Vita Group.
The deal comprises eight assets with a total of 3,198 beds, in the cities of Manchester, Glasgow, Edinburgh, Leeds, Birmingham and Newcastle.
Three of the buildings are under-construction with completion due soon.
Welcoming the acquisition, Ronen Ribak, head of real estate transactions Europe at DWS, said: ‘A high-end portfolio in strong locations catering to both local and international students was critical in our decision to acquire this portfolio, and to partner with a true experience led operator such as Vita Group.
‘We will continue to seek best in class student housing properties across Europe and partner with managers and operators with a shared trajectory of growth as we continue to deploy capital in the European student housing sector.’
Vita Student was launched in 2013 and has 5,760 beds in 19 residences across 12 cities in the UK. Vita Group said the transaction enables it to press ahead with international expansion plans, including a Vita Student scheme in Barcelona, Spain.
Mark Stott, CEO of Vita Group, said: ‘Finding the right strategic investment partner was imperative to the future of our business and I’m delighted to announce today’s news. This deal is hugely significant for both the next chapter of growth for Vita Student and the wider Vita Group as we bring more innovative brands to market.’
Vita Group was advised by Savills and Rothschild in the transaction.
