Global private investment firm Starwood Capital Group and European investment manager Round Hill Capital are acquiring a student residential portfolio in the UK for £120 mln (€139 mln).
Through a new joint venture, the firms have purchased an operational portfolio of six modern, purpose-built student accommodation assets across the UK. As part of the transaction, the joint venture has also entered into a forward-funding agreement for the acquisition of a development scheme in Newcastle.
The portfolio will be managed via Round Hill's Nido Collection brand and operational platform for student accommodation.
'Starwood Capital has an established platform of student housing in the US, with 6,855 beds under management, and based on our strong performance and track record, we are keen on expanding our footprint in this sector in the UK,' said Zsolt Kohalmi, head of European acquisitions at Starwood Capital Group. 'We are excited to work with Round Hill Capital and Nido as our partners on this investment, which boasts assets in superb locations and strong student markets that provide a high-quality offering to students.'
The direct-let properties are in central locations in the cities of Edinburgh, Cambridge, Glasgow, Newcastle and Southampton, and total 1,595 beds.
'Round Hill has an established and successful investment track record and operational expertise in premium student accommodation in the UK, and we are very pleased to make this acquisition through our new UK joint venture with Starwood Capital Group,' said Michael Bickford, founder and CEO of Round Hill Capital. 'We look forward to actively managing and repositioning the portfolio and building a substantial premium student accommodation platform in partnership with Starwood Capital Group in key cities across the UK.'
Round Hill has a track record of investing in and operating student accommodation assets, having acquired, built up and managed over 2,700 student housing beds. In 2015, the firm sold 2,378 beds to Greystar Real Estate Advisers in 2015 for £600 mln.
Starwood Capital Group and Round Hill were advised by Savills on the acquisition.
