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UK’s Fourth Largest Student Accommodation Investment Completed for £417m

The Temasek investment fund has completed the largest investment in UK student accommodation in 2016 thus far, investing £417m into the sector.

UK Student Accommodation Portfolio Investment

The Temasek investment fund has completed the largest investment in UK student accommodation in 2016 thus far, investing £417m into the sector.

Conducted through property investment arm Mapletree Investments, Temasek, the Singaporean state investment fund, completed the deal for the Mansion Student Accommodation portfolio following a lengthy international bidding war.


Generating interest from funds in North America, the Middle East and Russia, the Mansion Student Accommodation Fund portfolio consists of more than 5,500 individual bedrooms located in 25 properties across the UK.


Standing in major cities such as Leeds, Liverpool and London, the sale of the Mansion Student portfolio is the fourth largest UK student accommodation transaction in the asset class’ history.


For the second consecutive year, the month of March has seen large portfolio transactions complete ahead of the end of the financial year. Last March, the Liberty Living property portfolio, consisting of more than 16,700 rooms, was sold to the Canada Pension Plan Investment Board (CPPIB) for £1.1bn.


In the same month, the Pure Student housing portfolio was sold to the LetterOne investment fund for £532m, whilst US property company Greystar spent £600m on the London based Nido property portfolio, creating a total transaction value of £2.4bn across the three deals for March 2015 alone.


2015 saw the highest transaction value for the student accommodation sector since records began, with solicitors Addleshaw Goddard estimating that more than £6bn was invested within the asset class last year.


The ongoing growth of the UK’s student property market, described by Knight Frank in a 2013 report as being ‘structurally undersupplied’, has been in part driven by the boom in the UK’s higher education sector.


Last year, the UK government removed the restrictions in place for the number of students that could be enrolled at any given university; a move that the government believes will lead to 200,000 more people studying at UK universities by 2020.

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