Chicago-based private investor Harrison Street Real Estate Capital and UK student accommodation provider Uliving said that they are joining forces to invest in purpose-built student accommodation properties in the UK.
The two partners have signed their first acquisition with the purchase of a new €45.6 mln student accommodation development in Birmingham's city centre.
The development will be Uliving's first off-campus, direct-let project.
UBS Asset Management is providing senior debt funding through its real estate debt fund, the UBS Participating Real Estate Mortgage Fund (UBS-PREMF), while Harrison Street is the majority equity investor.
Uliving, the dedicated student accommodation brand of property development company Linkcity, is also providing equity and is the developer and operator.
Uliving's partners Bouygues Energies & Services and Bouygues UK will provide facilities management and construction services.
The development will include 435 new student bedrooms and extensive facilities including a large, street-facing gym; an open-plan common room area with seating, games and television screens; two study rooms; a launderette; a dance studio; and a landscaped roof terrace.
Construction will begin in April 2018, with the first students set to move in for the 2020/2021 academic year.
Daniel Gorzawski, managing director and head of Europe at Harrison Street, said: 'Partnering with best-in-class operators to invest in high-quality student accommodation projects is a key element of our strategy. This is a first-rate scheme in an excellent location and we look forward to a successful, long-term relationship with Uliving and UBS.'
'Having partnered with universities to create exceptional student accommodation schemes in Essex, Hertfordshire and Gloucestershire, it is exciting to have reached financial close on this project, which signals the start of our joint venture with Harrison Street and sees us developing our first off-campus, direct-let scheme,' added Uliving’s Executive Chairman, Nicolas Guérin.
Anthony Shayle, managing director and Head of Real Estate Debt EMEA of UBS Asset Management, commented: 'This loan reflects our continuing strategy in the UK, and potentially Europe, of supporting a broad cross-section of the real estate market with innovative debt structures.'
Eastdil Secured acted as financial adviser and Trowers & Hamlins was legal adviser to the Joint Venture.
DLA Piper was legal adviser to Harrison Street Real Estate Capital and CMS Cameron McKenna Nabarro Olswang was legal adviser to UBS Asset Management.
