Successful Sale of Residential Assets Shows Clear Demand for Student Accommodation
Linkcity has sold two purpose-built student accommodation (PBSA) properties in a joint venture with Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, to City Developments Limited (CDL).
The transaction comprises two PBSA assets: Canterbury Riverside and Altura in Birmingham with a total number of 926 beds. The assets were packaged in a portfolio sale with two additional PBSA properties owned by Harrison Street. The portfolio received a gross purchase price of £185 million, which represents 33% more than cost basis. This sale demonstrates the continued demand for demographic-driven real estate, and the strengths of the assets, despite market slowdown.
Linkcity led the development of the two schemes, working to raise the senior debt to finance the scheme through the construction phase for which its sister company, Bouygues UK, were appointed as main contractor. In addition, Linkcity were actively involved in the asset management of the schemes and brought in partner, CA Ventures, to operate each scheme under their Novel brand.
The student accommodation at Canterbury Riverside was Bouygues UK’s first self-delivered modular scheme, delivered during the pandemic. It has 491-bedrooms and 430 modules built in a dedicated factory in Morocco and transported to the UK. It features a range of rooms from studios, ‘twodios’, premium rooms and cluster rooms with an en-suite, while all rooms have access to the fitness studio, games area, roof terrace and courtyard as well as a study area and laundry.
Altura is an exciting development on the site of the 1970’s Bath Court office building dedicated to Birmingham’s growing student population and well located with the city centre. The 435-bed scheme is a mixture of en-suite clusters and individual studios, built over 12 storeys. The student accommodation comprises 360 en-suite bedrooms within 6- and 8-bedroom apartments as well as 75 studio bedrooms.
This successful sale demonstrates the strength of these assets and the appetite for student accommodation in the UK. Linkcity is proud to have been involved at every stage from development, build and operation through to the sale of this portfolio. It’s been a pleasure to partner with Harrison Street on this joint venture.Oliver Campbell, Development Director
The seller was represented by JLL, DLA and Deloitte on the transaction.