Client story

Multidisciplinary real estate expertise enables £580 million acquisition of large-scale accommodation project

Several JLL teams collaborate on deep insights across real estate sectors to structure a complex transaction for eight assets, delivering strong value to buyer and seller

Value

£580 million sale

The ambition

When global real estate firm QuadReal wanted to expand its $61 billion asset portfolio by investing in the valuable UK living sector, it sought to acquire the large-scale, multi-site accommodation development Project Harmony.

This portfolio of high-quality real estate assets is uniquely income-producing, with 399 purpose-built student accommodation units split across two sites in London and 936 build-to-rent units spanning five schemes in London and one in Manchester.

Despite these fundamentals for robust returns, such a large, multi-asset project is often complicated to secure financing for - and in a year punctuated by pandemic-driven lockdowns and restrictions, political and Covid 19-related issues had raised market uncertainty.

QuadReal needed multidisciplinary insights that could accurately forecast the portfolio’s value and ability to continue generating income.

The strategy

JLL’s Capital Markets team recognised that comprehensive background on each asset was the key to securing this complex transaction for eight accommodation sites spread across two cities.

It conducted economic and demographic analysis and local market research, deepening its insights by collaborating with other JLL teams in sectors including residential, student accommodation, private rental management, and debt advisory.

After this detailed due diligence across market sectors, JLL’s Capital Markets team generated a rigorous pricing schedule, financial model and investment report, as well as a forecast for growth individually and over the entire portfolio.

This enabled the structuring of a transaction that represented strong value to both buyer and seller, with QuadReal acquiring Project Harmony for in excess of £580 million.

The results

Thanks to detailed asset-level insight and capital markets and financing expertise across market sectors, JLL’s Capital Markets team accurately forecasted the continuing high demand for the accommodation classes in this rare, high-quality portfolio.

The multi-faceted advisory it provided gave QuadReal the guidance and confidence to commit to the transaction and successfully acquire Project Harmony despite the market uncertainty at the time.

As a result, QuadReal was able to strategically expand its footprint in the UK living sector with high-performing assets that are well-positioned for robust income generation and value growth over the coming years.

We leaned heavily on JLL’s multi-faceted advisory offering that encompassed detailed asset level insight, as well as capital market and financing advisory that was always at the forefront of latest market trends. Our success on Project Harmony was largely due to their guidance and client-first service.

Jay Kwan, Managing Director, QuadReal Property Group