UK: Legal & General Investment Management (LGIM) has acquired the Aqua portfolio from Global Student Accommodation (GSA).
The firm’s first direct-let PBSA acquisition was made on behalf of Legal & General Retirement Institutional (LGRI).
The portfolio consists of two PBSA schemes in Exeter and Glasgow. Both were completed in 2019 and have an occupancy level above 98 per cent.
Clifford House in Exeter has 312 rooms, while Scotway House in Glasgow has 399 bedrooms.
L&G’s new student living business will target operational PBSA schemes built in the past five years.
LGIM said it plans to deploy £500 million of capital into the sector over the next two years, with the longer-term goal of expanding the portfolio to more than £1 billion and directly managing property with around 5,000 beds across the UK.
Neil Dovey, head of annuity transactions at LGIM, said: “We’re excited to have made our first direct-let acquisition in the student accommodation space. These assets provide high-quality PBSA space in locations benefiting from strong academic institutions and demand from students, looking for buildings designed to meet the requirements of modern university life.”
LGRI chief executive of LGRI Andrew Kail added: “Pension scheme capital is being put to positive use in the real economy, with tangible benefits across generations. These buildings provide students with quality accommodation, while the British economy as a whole should benefit from long-term investing in real assets.”
