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London

Student housing market set for an active fourth quarter

According to JLL’s Q3 2017 Student Housing Bulletin


JLL’s Q3 Student Housing Bulletin reveals that the autumn months will define the year in terms of annual investment volumes.  Philip Hillman, chairman of JLL’s Alternatives team, said: “The student housing market is set for an active quarter with a considerable quantum of stock, including a number of high-profile portfolio opportunities being brought to market.  These opportunities will enable investors to acquire scale in the student housing sector and are likely to be met with strong demand including interest from new entrants to the sector."

Traditionally a less active quarter, there were a number of single asset transactions which completed in Q3. JLL disposed of The Maltings in Colchester, the second phase of which was completed in 2015 and now represents a stabilised, fully let asset. The scheme sold for a price in the region of £60m. Empiric Student Property remained active in the third quarter with acquisitions in Bristol, Liverpool, Canterbury and Edinburgh. GCP Student Living completed on the funding of the Circus Street student scheme in Brighton for around £70m. The scheme will comprise 450 student beds with the benefit of a university lease and is anticipated to be operational in time for the 2019/20 academic year.

The key portfolio transaction in the quarter was Tristan Capital Partners’ £439m investment into a new UK student housing JV (joint venture) with Downing. Downing, advised by JLL, will retain a 10% stake in the JV, which comprises a 2,756 bed operational portfolio across six assets in addition to development schemes in Glasgow and Vauxhall, London.