UK: Investment management firm Harrison Street has completed the sale of four purpose-built student accommodation [PBSA] assets in the UK to City Developments Limited [CDL].
The properties, making up 1,657 beds, are located in Birmingham, Canterbury, Coventry and Leeds and were individually developed by Harrison Street European Property Partners II, with the support of joint venture [JV] partners Linkcity and Crosslane Property Group. The portfolio sale secured a gross purchase price of £185 million, representing a 33 per cent premium to purchase price overall.
In a separate transaction, CDL grew its UK student housing portfolio further with the acquisition of a PBSA asset in Southampton, including 206 beds.
Paul Bashir, chief executive of Harrison Street Europe, said: “We are pleased to partner with the high-calibre team at CDL to complete the sale of these four high-quality PBSA assets. Thanks to the hard work and execution capabilities of our team, the portfolio produced an attractive return in a difficult macroeconomic environment, demonstrating Harrison Street’s ability to identify assets that are backed by demographic-driven trends and exit through strategic portfolio sales.
“We will continue investing in PBSA assets across Europe with confidence given the attractiveness of these properties in the current market environment,” he added.
Since its establishment in 2005, Harrison Street claims to have invested in almost 215,000 beds across North America and Europe, as well as injecting close to £2.2 billion [€2.5 billion] in 55 purpose-built education and student housing assets in the UK, Ireland, France, Germany and Spain.
In October, Harrison Street announced a JV with developer Trinitas to develop four PBSA projects in the United States with a total value of $450 million, while in June it secured a similar agreement with Eagle Street Partners to acquire and develop a 554-unit BTR multi-phase development at East Road in Dublin.
To date, the firm has put more than £16.5 billion [$20 billion] into student housing properties while selling over £6.2 billion [$7.5 billion] in assets around the world.
