Global investment firm KKR has sold five major student housing developments across the UK to Greystar Real Estate Partners LLC for £291m.
The five student housing developments comprise a total of 2,163 units situated in London, Glasgow, Coventry and Bristol, four cities renowned for their higher education institutions.
KKR said four of the assets are operational for the 2020/21 academic year, while the asset in Bristol is under construction and due for occupancy in September 2021.
KKR acquired the five PBSA sites in 2018 to develop student housing properties due to growing demand in the market. KKR worked closely with Nido Student as operator of the sites.
“These assets have helped to address the growing demand for high-quality accommodation across university hubs in the UK that provide a focus on wellbeing and community for students. We continue to see the UK as a strategically significant market for PBSA, with strong projected demand, and will continue to assess future opportunities to acquire and develop quality assets,” said Seb D’Avanzo, Managing Director in European Real Estate at KKR.
The UK remains one of the leading global destinations for higher education with the benefit of top-ranking universities, with strong forecast growth trends in the university-age demographic in the UK, supported by ongoing demand from international students.