UK: Real estate investor Barings has acquired a purpose-built student accommodation (PBSA) asset in Vauxhall, London, for £101.1 million.
The transaction was made on behalf of a European value-add real estate strategy in partnership with Rosethorn Capital.
Acquired from CLS Holdings, Spring Mews comprises 378 beds across 306 cluster rooms and 72 studios.
The property offers a range of resident amenities, including co-working areas, a gym, swimming pool, cinema and games room, and private outdoor space.
The scheme holds a BREEAM Very Good rating and an EPC A certification.
Spring Mews offers connectivity to major London universities such as King’s College London, LSE, UCL and Imperial College.
Rosethorn Capital, a new PBSA asset manager, will oversee operations at Spring Mews. The business plan will focus on optimising rental income and reducing operating costs.
Ben Pile, head of European residential investment and asset management at Barings Real Estate, said: “One of the world’s best cities for students, London is nevertheless significantly undersupplied with quality accommodation, and with delivery falling, this shortfall is likely to deteriorate over time.
“Spring Mews is an institutional-grade, stabilised asset that benefits from an excellent location, and therefore proved to be a compelling acquisition opportunity as we seek to expand our exposure to the living sector – in London, the UK and across Europe – on behalf of our capital sources. We are excited to be working with sector specialist, Rosethorn Capital, as they launch their new business,” he added.
Rory Allan, managing director and portfolio manager for the European closed-end value-add real estate fund series at Barings Real Estate, said: “Spring Mews represents a rare opportunity to acquire a cash flow generating PBSA asset in a prime central London location with its severe supply/demand mismatch which is expected to continue to generate above trend rental growth. The investment is projected to deliver strong risk adjusted returns through asset management driven NOI optimisation with downside protection.
Stephen Rigby, CEO at Rosethorn Capital, said: “We are thrilled to have completed the deal in partnership with Barings. The acquisition is a significant milestone for us as a new business, and one that will serve as a fantastic springboard for future growth. The market remains very challenging, and I’m extremely grateful for all the hard work and commitment from my team and our advisors, as well as the collaborative approach from CLS Holdings.”
Highlights:
• Barings has acquired student housing asset in Vauxhall, central London, for £101.1 million
• The property, Spring Mews, includes 378 student beds and extensive resident amenities
• The property is managed by Rosethorn Capital, a newly launched UK PBSA asset manager
