Stories, trends, deal makers and breakers, investors and seekers. Read about PE investment deals, M&A, capital markets and business in general, right here!

student_housing_accomodation_real_estate_investment_fund_developers

A rapidly expanding student population, coupled with greater purchasing power, has resulted in a significant number of students leaving their homes to pursue higher education, across the globe. With full-time students seeking accommodation in higher numbers, especially in the ‘education…

A rapidly expanding student population, coupled with greater purchasing power, has resulted in a significant number of students leaving their homes to pursue higher education, across the globe. With full-time students seeking accommodation in higher numbers, especially in the ‘education hubs’ of the world, capital investment in purpose-built student accommodation is on the rise.

China is the world’s largest outbound student market, with the largest fractions of its student population moving to countries such as the United States, Australia, Japan and the UK. According to a report published by Savills UK, investment in student accommodation has seen a rapid increase, especially with Singapore-based GIC and Mapletree having invested $1.5 billion (£1.2bn) in 2016.

In the United States alone, recorded transaction volume in 2016 was $9.8 billion, with several portfolio transactions being a part of this deal activity. Real estate investment trust, American Campus Communities, delivered 7 new properties last year, adding close to 3,200 beds to the U.S. market. It plans to add another 7,500 beds by the end of 2017.

In many international markets, demand has significantly exceeded supply, causing investors to scramble for a piece of the pie. Just last week, Real estate fund, Europa Capital Partners, and Generation Estates Limited, announced the launch of their joint venture fund, Europa Generation (Europa Generation Student Fund), which is predominantly focused on student housing in the United Kingdom. The fund aims to build a portfolio of 5,000 beds over time, with projects either planned or being developed in Bath, Newcastle, Sheffield, Aberdeen, Bournemouth and Oxford.

Readily available debt financing has also contributed to the rise in student housing acquisitions last year, and is one of the reasons why this niche alternative asset has transformed into an established, global investment opportunity, even as demand for the property type continues to soar.

student_accommodation_global_investment_commercial_real_estate
Source: Savills World Research – Student Housing, RCA

Take a look at some of the significant student housing transactions that have occurred recently –

Mapletree Investments acquired student housing assets from Kayne Real Estate

Singapore-based real estate development company, Mapletree Investments Pte Ltd., acquired a portfolio of housing assets in two significant student housing markets – Canada and the United States. Kayne Anderson Real Estate Advisors sold 8 student housing assets, and 4 multi-family assets as part of this transaction.

Aspen Heights Partners acquired Lincoln Property’s student housing division

US-based real estate firm Aspen Heights Partners, acquired Lincoln Property Company’s student housing division, Grand Campus Living. As per the deal, Aspen Heights Partners has taken on the property management of more than 3,000 beds across the United States.

RealtyShares closed a debt transaction for student housing in Washington

RealtyShares, an online marketplace for real estate investments closed an $11.9 million commercial real estate debt transaction for the acquisition and partial recapitalization of a 10-property portfolio of student housing located in Seattle, near the University of Washington.

 

To gain access to real estate investment opportunities in purpose-built student accommodation across Europe and North America, sign up on BankerBay.

Image source: Pixabay

Comments