SINGAPORE - Singapore sovereign wealth fund GIC and student accommodation developer GSA have acquired a 7,150-bed United Kingdom (UK) student accommodation portfolio from funds managed by Oaktree Capital Management.
The transaction is the UK's largest student accommodation deal so far this year, GIC said, though it did not disclose the value of the deal. Separately, The Telegraph reported that when completed, the total portfolio will be worth around £700m.
The portfolio was built over the last three years and includes 3,634 operational beds across nine student accommodation properties in six top university cities, namely - 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 onstream over the next 30 months.
Ms Madeleine Cosgrave, regional head of Europe for GIC Real Estate, said in a statement: "GIC is pleased to partner GSA, which is among the leading developers and operators of student housing globally. 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."