Us investors target UK student property

Photo: RealUniGuide

It is therefore no surprise that US buyers are increasingly being attracted to the segment - a fact made clear by the recent acquisition of a Opal Property Group portfolio, reports IPIN global.

New York-based Avenue Capital has acquired the package of purpose built student accommodation, equating to approximately 1,800 bed spaces, from the distressed housing provider. The exact terms of the transaction are not known, but the deal is taking place through KPMG, which is the administrator to certain companies belonging to the former Opal Property Group.

Student accommodation assets are located in some of the UK's major university cities, including 992 beds in Sheffield and 648 in Nottingham. Avenue Capital claims this is its first step of a long-term plan to invest in the UK student accommodation sector.

Richard Furst, senior portfolio manager at the Avenue Europe Strategy and chief information officer of Avenue Capital Group, said: "We are delighted to complete the acquisition of this portfolio of high-quality student accommodation assets. These properties will serve as the foundation of a broader investment that we intend to make in the UK student accommodation market over the long-term."