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Student accommodation experiences record month with £2.4bn of investment

Investment in the UK’s thriving student accommodation market hit a record surge this month as the sector commanded more than £2.4 billion in the month of March alone.

UK Student Property

Investment in the UK’s thriving student accommodation market hit a record surge this month as the sector commanded more than £2.4 billion in the month of March alone.

The record figures, amounting to more than the total sales in the asset class for 2014, follow the completion of a number of high profile investment deals over the past few weeks.


The Liberty Living brand, consisting of over 40 halls of residence across 17 of the UK’s most popular university towns and cities, was sold by the Brandeaux Student Accommodation Fund to the Canada Pension Plan Investment Board for £1.1bn. The deal completes the sale of one of the UK’s largest property portfolios with more than 16,700 rooms and places the Canadian fund as the third largest owner of student property in the UK.


The LetterOne investment fund, spearheaded by Mikhail Fridman, German Khan and Alexei Kuzmichev, built upon their existing student assets in the UK with the purchase of the Pure Student housing portfolio for £532 million. This substantial drive into the UK market was followed by a further commitment of more than £140 million across 5 other student properties across the UK. The acquisitions mean that the fund has added more than 3,200 student rooms to their portfolio.


The month’s large scale purchasing was brought to a close by US rental housing company Greystar, who acquired the London based Nido portfolio for £600 million. The properties, located in Notting Hill, King’s Cross and Spitalfields, target the luxury student market with gyms, cinemas, fitness rooms and bars all a part of the communal facilities.


This surge of purchases highlights the strong interest that the UK’s student accommodation sector has been receiving from high net worth and corporate investors in the UK and overseas.

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