Student housing specialist Scape has joined forces with Dutch pension fund APG to launch a £500 mln (€580 mln) student accommodation joint venture in the UK.
In a statement, the Dutch pension fund said that ‘the step in the British market offers very attractive investment opportunities with a stable return in the long term’ and follows a successful start in Australia, where APG is already active through a partnership with Scape, launched in 2015. The pair, together with Allianz Real Estate and AXA recently bought Urbanest’s A$2 bn (€1.3 bn) student housing portfolio.
The newly created APG and Scape venture has been seeded with 1,000 purpose-built student accommodation (PBSA) beds in London and the South-East, a £250 mln mixed-use residential and PBSA led development scheme in Canada Water, and the first Scape Living building in Guildford.
APG, which is believed to be putting 75% of the equity for the new venture, said it will support Scape’s strategy to develop a further 10,000 beds in the UK over the next five years, including a 788-bed development at London’s Canada Water.
‘The partnership will establish Scape as one of the world’s largest developers and operators of purpose-built student accommodation (PBSA), while also fueling the company’s expansion strategy into mainstream living as it takes its new Scape Living concept to a wider market,’ APG said.
Currently, Scape’s portfolio has over 30,000 beds in operation and development across the UK, Australia and the US. With Scape’s ambitious strategy underway, the business is targeting growth in excess of £2 bn in the coming years.
Robert-Jan Foortse, head of European real estate at APG Asset Management said: ‘On behalf of our pension fund clients, we are pleased to announce the enhancement of our successful relationship with Scape that started for APG as founding investors of the Australian Scape venture. We look forward to building on this global partnership with Scape by supporting its UK expansion.’
APG is already active in the UK and European student housing market, having backed the expansion of Amsterdam-based student resi provider The Student Hotel.
Nigel Taee, Scape’s founder and global chairman said the firm’s student proposition is just the beginning for Scape.
He said: ‘We have ambitious plans for the next few years as we develop the Scape offering and start to move into new territories. Scape Student has gone from strength to strength over the last 12 years. We will continue to develop this both in the UK and globally whilst also extending our proposition to provide quality accommodation for city dwellers with Scape Living.’
Tom Ward, Scape’s co-founder and global CEO, said: ‘Throughout the Covid-19 pandemic we have been committed to focusing on global business expansion and ensuring long-term resilience. The PBSA sector has proven to be strong, despite the challenges of the last few months, with accommodation providers adapting to these new conditions and adjusting operations accordingly. We’re delighted to be partnering with APG on the next stage of the roll-out of the UK business. Scape’s student proposition remains robust and we see significant potential in bringing our offering to a wider audience. This investment will help consolidate our position at the forefront of the PBSA market as well as enabling the extension into new sectors.’
