UBS fund buys first standing student resi asset in London

The acquisition was made on behalf of UBS Triton Property Fund. The deal represents an average price per bed of £171,000.

Located in Fulham, Orient House was acquired from Imperial College London, which has operated the accommodation as part of its GradPad portfolio, catering exclusively to London’s postgraduate student community, since its purchase of the asset in 2012.

Howard Meaney, head of real estate UK and senior portfolio manager for UBS Triton, commented: 'London universities have over a quarter of a million full-time students, almost 70% of whom are unable to access university or private-sector accommodation. This demographic creates a demand profile which, combined with a lack of supply of direct-let purpose-built student accommodation, makes Orient House an exciting acquisition for UBS Triton, in line with its investment criteria and returns profile. Furthermore, now with an 800-bed student accommodation portfolio, the fund has built up a meaningful expertise of this sector, enabling us to effectively manage our assets and ensure their value is maximised.'

Fourth student resi addition
Following the acquisition, Universal Student Living will operate the purpose-built scheme on behalf of UBS Triton, on a direct-let basis, targeting students studying across London.

Orient House represents the fourth student accommodation addition to UBS Triton’s portfolio and its first standing investment in the sector.

The initial three acquisitions were full development funding propositions in Newcastle (completed in summer 2016), Durham and Belfast (completion due in summer 2017).

UBS Triton’s overall portfolio comprises 32 high-quality assets, the majority of which are located in the southeast of the UK, and is weighted towards offices, the industrial sector, retail warehousing, and now increasingly student accommodation.

UBS Triton was advised by Tudor Toone and Lawson & Partners on this transaction, while the vendor was advised by Knight Frank.