GIC, GSA acquire portfolio of 7,150 UK student beds

LONDON - Singapore’s sovereign wealth fund GIC and Dubai-based GSA have joined hands to acquire a 7,150-bed UK student accommodation portfolio from funds managed by Oaktree Capital Management, the two buyers said in a joint statement on Thursday (Sept 29).

GIC and GSA did not disclose the acquisition price but said the transaction is the UK’s largest student accommodation deal so far this year. The portfolio has been built within the last three years and includes 3,634 operational beds across nine purpose-built student accommodation properties located in six top university cities: Liverpool, Bristol, London, Edinburgh, Cardiff and Southampton. The deal also includes a pipeline of 3,516 beds in five cities: Plymouth, Portsmouth, Birmingham, Bournemouth and Cambridge, which GSA will bring on stream over the next 30 months.

Mr Nicholas Porter, founder and chairman of GSA said: “This top quality portfolio will give GSA a stronger foothold in the UK market, where the high demand for university places continues to drive the need for well-managed, purpose built accommodation.”

Ms Madeleine Cosgrave, Regional Head, Europe, GIC Real Estate, said: “The high-quality assets are located close to university campuses and city centres. As a long-term value investor, we believe student accommodation will be a sector that continues to deliver steady rental growth and resilient income returns amidst a challenging, low-yield environment.”