UK: Irish developer O’Flynn Group has agreed a £1 billion joint venture with private equity firm Partners Group to deliver student accommodation and coliving units across the UK.
The agreement involves finance from Partners Group and assets owned and operated by two of O’Flynn Group’s subsidiaries, Host Student Housing Ltd and Tiger Developments.
The JV is seeded with two Host-owned operational PBSA assets in Leicester (129 units) and Colchester (252), a PBSA development project in Bournemouth (206)and a coliving development project in Guildford (301).
In addition, a pipeline of more than £250 million of PBSA developments has been identified, comprising more than 1,000 beds in Manchester, Bristol, Edinburgh and Birmingham.
Partners and Host intend to expand the JV through further projects in the PBSA and co-living sectors, creating a portfolio with a gross development value of £1 billion.
Michael O’Flynn, chairman and chief executive of the O’Flynn Group, said: “Our experience over 25 years in providing student accommodation in Ireland, the UK and across Europe will clearly benefit the joint venture. This is a unique opportunity, through Host, to collaborate with Partners Group in the development of PBSA and co-living projects. The scale of the joint venture will quickly position the JV as a leading player in a sector with significant growth potential.”
Rahul Ghai, managing director and co-head private real estate Europe at Partners Group, said: “The student sector benefits from long-term tailwinds, such as favourable population growth trends and rising enrolment rates, as well as the continued strength of the UK’s higher education offering globally. The JV has a robust pipeline, and we look forward to hosting students across some of the most dynamic cities in the country.”
Partners Group has invested more than $170 billion in various transactions on behalf of its clients globally since 1996. The group had around $127 billion in assets under management at the end of last year.
The O’Flynn Group has developed and acquired more than 10,000 beds and currently operates around 8,000 student beds across 28 sites in the UK, Ireland and Europe. It is also a major housebuilder in Ireland.
