UK student housing deals to hit £1.5bn in 2012
UK student housing transaction volumes are forecast to reach as high as £1.5bn this year, according to CBRE forecasts, eclipsing last year’s £1.15bn, in a market favoured by both income-seeking real estate investors and senior debt lenders.
CBRE research shows around £246m worth of student accommodation deals closed in the first quarter of this year, with a number of deals expected to close later this year, including Blackstone’s sale of Nido Student Living for around £400m to Round Hill Capital.
The popularity of the segment is driven by a number of property dynamics, unique to student accommodation.
Investors and lenders alike are attracted to the long leases and the demand-supply dynamic, which is yet to be diminished by rising student fees …