EQT Real Estate II fund (EQT Exeter) has agreed to acquire six student accommodation assets in two separate transactions from subsidiaries of Watkin Jones and Tide Construction in the UK.
The transactions amount to 2,313 beds, 1,254 of which are currently operating with a further 1,059 beds that will be developed by Watkin Jones and delivered during 2023 and 2024.
From Watkin Jones, the company has agreed to acquire five assets with a total of 2,063 beds in Bath, Nottingham, Swansea, Bristol and Glasgow, top-tier university cities with severe supply shortages of student accommodation.
From Tide Construction, EQT Exeter has agreed to acquire 250 beds in an operating asset known as Great Court, located in South Bermondsey, London, which is within close commute to all of the top-tier London universities and easy access to South Bermondsey rail station and Bermondsey tube station.
”These six purpose-built assets are important cornerstone investments as EQT Exeter seeks to aggregate a large portfolio of student housing assets across Europe with high-quality, high value-for-money offerings for students who are underserved by the wider residential market. EQT Exeter sees significant growth potential across the European student housing sector and has a significant pipeline of additional acquisition opportunities in markets with acute demand / supply imbalances and compelling demographic profiles,” said the company in a statement.
Russell Petrie, Head of Student Housing – Europe, at EQT Exeter said, “These transactions mark a significant milestone for EQT Exeter’s expansion in the European student housing sector, bringing the total number student beds in operation or in development to 5,222 and adding a new country to our European footprint. By selecting the best locations in undersupplied markets coupled with an unwavering focus on tenant experience, we expect these assets to be highly attractive to students by providing an environment where they can thrive both educationally and socially.”
Henrik Orrbeck, Head of Transactions – Europe, at EQT Exeter said, “As a global leader in the Sheds, Beds and Meds sectors, student housing is a key pillar to growing EQT Exeter’s thematic investment strategy focused on providing direct-to-consumer real estate solutions in the thriving “living” sector. We are excited to work with Fresh and CRM to deliver a best-in-class product for the students. We continue to investigate a number of exciting acquisition opportunities as we build upon this success and continue our European expansion efforts with a goal of being one of the leading European student housing investors.”