Maven and IPIM sell two student housing developments for £39.8m
Maven and IP Investment Management (IPIM) have sold a portfolio of two newly developed purpose-built student accommodation assets totalling 360 beds to the Malaysian pension fund Kumpulan Wang Persaraan Diperbadankan (KWAP) and 90 North Real Estate Partners. The portfolio consists of The Mill House in Edinburgh and 800 Bristol Road located in the Selly Oak area of Birmingham. Both assets have been fully operational with 800 Bristol Road opening in time for the 2016/17 academic year and The Mill House welcoming its first tenants a year later.
This is KWAP’s first acquisition of a student housing portfolio in the UK and will provide a platform for further investment in the rapidly growing sector. The Mill House was sold for £25.1 million or £97,800 per bed. 800 Bristol Road was sold for £14.6 million or £141,900 per bed.
The Mill House at 396-400 Gorgie Road, is a 257-bed student accommodation asset located west of the Edinburgh city centre between Edinburgh University and Edinburgh Napier University. The building comprises 227 en-suite clusters, 30 studios, and 1 ground floor retail unit. The property is managed by Fresh Student Living. 800 Bristol Road is a prime 103-bed studio student accommodation asset located within walking distance to the University of Birmingham. The property is managed by Collegiate AC.
Each of the properties offer student accommodation of the very highest standard in excellent locations, enhancing the quality of the city's accommodation provision. The popularity of the two developments have seen both 100% pre-let for the 2018/19 academic year.
“We are delighted with the return on investment these high quality student properties have achieved for investors. The PBSA sector continues to offer excellent opportunities for institutional and overseas investors, such as KWAP and 90 North to acquire income generating assets and following the success of the first exits we have completed with IPIM, we look forward to continuing our relationship to identify new sites for development.”
Andrew Whiteley, Investment Director at Maven
“KWAP’s acquisition shows the ongoing institutional demand for high quality operational assets such as the Mill House and 800 Bristol Road. IPIM will continue to work with Maven to develop UK PBSA schemes following this successful exit of our first developments together.”
Selina Williams, Executive Director at IPIM