Student Castle has sold a best-in-class, geographically diversified purpose built student accommodation (PBSA) portfolio to Singapore Press Holdings Limited for £448million.
The portfolio, which is the second to be sold by Student Castle following a disposal to Liberty Living for £330m in 2015, comprises seven assets across seven leading UK university cities, with a total of 2,383 beds. Savills advised the seller.
Boasting prime student locations, 84% of beds in the portfolio are in Russell Group cities, home to the UK’s top performing universities including the University of Oxford and University of Cambridge. There are five stabilised assets in York, Cambridge, Bath, Edinburgh and Durham and two development assets in Oxford and Brighton that are to be operational in 2020.
The modern portfolio offers students an unrivalled specification and design, with an extensive amenity provision including state-of-the-art gyms, study spaces and common areas, free bike hire, 24/7 security and year round social events.
With exceptional year-on-year occupancy, the assets are all in established university cities with robust student growth. The portfolio is forecast to achieve 100% occupancy for 2019/20, providing a total gross income of £17.6m, increasing by 64% to £28.9m once the Oxford and Brighton sites open in 2020.
Student Castle have been dedicated to acquiring prime sites in the most renowned UK university cities. We have torn up the rulebook on student accommodation since launching in 2010, showing innovation in the sector with an extremely high standard of accommodation in a variety of contemporary layouts. We are delighted that the market has recognised the unique nature of what we've achieved.
Jacqui Hawthorn | COO of Student Castle
James Hanmer, Head of UK Student Accommodation and a Director in Savills Operational Capital Markets Division said: “This sale clearly demonstrates the continued demand from global investors for high quality, scaled PBSA portfolios in the UK that offer secure and stabilised income streams. We launched to investors in August with a highly targeted international marketing campaign. We were very pleased to achieve multiple offers for our client and to help guide the process through to a successful close.”
