UK: Real estate investment manager EQT Exeter will acquire PBSA assets in two separate transactions from subsidiaries of Watkin Jones PLC and Tide Construction.
The transactions total 2,313 beds and bring EQT Exeter‘s European student housing portfolio to 5,222 beds
The EQT Real Estate II fund will acquire the assets – 1,254 of the beds are currently operating with a further 1,059 beds that will be developed by Watkin Jones and delivered during 2023 and 2024.
From Watkin Jones, EQT Exeter has agreed to acquire five assets with a total of 2,063 beds in Bath, Nottingham, Swansea, Bristol and Glasgow. Three of them are in development and are set to achieve BREEAM Excellent, with the operating assets having already achieved BREEAM Very Good. Upon completion, Watkin Jones’ in-house operator Fresh will manage the five schemes. Fresh has 22,000 beds under management across 32 cities in the UK and Ireland.
From Tide Construction, EQT Exeter has agreed to acquire 250 beds in an operating asset called Great Court, Bermondsey, south London. It provides a high-specification offering to students including 24/7 reception, gym, study space, courtyard, cinema and lounge. The development was built with excellent sustainability credentials, achieving BREEAM Excellent and EPC A. The asset will be operated by CRM, an award-winning operator in the UK and EU with approximately 25,000 beds under management. Under CRM’s management, the asset achieved full occupancy when it opened in 2021.
Russell Petrie, head of student housing – Europe, at EQT Exeter said, “These transactions mark a significant milestone for EQT Exeter’s expansion in the European student housing sector, bringing the total number student beds in operation or in development to 5,222 and adding a new country to our European footprint. By selecting the best locations in undersupplied markets coupled with an unwavering focus on tenant experience, we expect these assets to be highly attractive to students by providing an environment where they can thrive both educationally and socially.”
Henrik Orrbeck, head of transactions – Europe, at EQT Exeter, added: “As a global leader in the ‘sheds, beds and meds’ sectors, student housing is a key pillar to growing EQT Exeter’s thematic investment strategy focused on providing direct-to-consumer real estate solutions in the thriving living sector. We are excited to work with Fresh and CRM to deliver a best-in-class product for the students. We continue to investigate a number of exciting acquisition opportunities as we build upon this success and continue our European expansion efforts with a goal of being one of the leading European student housing investors.”
EQT Exeter was advised by DLA Piper and Capita on the transaction with Watkin Jones, and by Harris Associates, Taylor Wessing and Arcadis on the transaction with Tide Construction.
