Beachrock has been appointed to sell a £90m portfolio of purpose built student accommodation (PBSA), comprising 1,494 student bed spaces.
The seven assets are located in four university cities with each bed worth £60k.
Four Coventry sites of Corporation Village, Burges House, Pillar Box and Market Way are up for sale as well as Clarendon Street in Nottingham, which when combined totals more than 800 beds …
Privately-owned real estate developer, investor and asset manager – Firethorn Trust – has announced that under its Living platform, it has purchased a purpose-built student accommodation (PBSA) site in Leith, Edinburgh.
Forming part of the Leith Walk regeneration scheme promoted by Calder Weir Properties, part of the site was purchased with planning permission to create a PBSA block and three commercial units.
Firethorn will develop the six-storey building that will include 230 student beds and residential amenities including a fully equipped gym, modern study spaces and student common rooms. Work on site is expected to start in the summer, with completion due in 2026/27 …
HIGHLIGHTS
Full occupancy in 2023/24, strong demand for 2024/25
· 99.8% occupancy and 7.4% rental growth for the 2023/24 academic year (2022/23: 99.3% and 3.5%)
· Strong reservations for 2024/25 80% (2023/24: 83%)
· 44.3p adjusted EPS in 2023, +8% YoY (2022: 40.9p)
Sustained earnings growth from our best-in-class platform
· Confident in delivering rental growth of at least 6% for 2024/25 (previously at least 5%)
· Guidance for 3-5% growth in adjusted EPS in 2024 to 45.5-46.5p
· Targeting 10-12% Total Accounting Return (TAR) in 2024, before yield movement
· Earnings growth to accelerate from 2026 as development completions increase
· £26 million technology upgrade to enhance customer experience and EBIT margins from 2025
Housing supply unable to meet student demand
· Significant need for high-quality, affordable student homes
· New PBSA supply 60% below pre-pandemic levels and over 100,000 reduction in HMO beds available
Investment activity aligned to the strongest universities
· Delivery of £60 million Morriss House development in Nottingham at 8.5% yield on cost
· Rental portfolio enhanced through £24 million of refurbishments at a 9% yield on cost
· £197 million of disposals held for sale to improve portfolio quality (Unite share: £79 million)
Record £1.3 billion development pipeline in the strongest markets
· £569 million committed pipeline in Russell Group cities at 6.5% yield on cost
· £250 million joint venture agreed with Newcastle University announced in February
· Future development pipeline of £452 million at 6.7% yield on cost in cities with tightest supply
· New London scheme added to future pipeline for delivery in 2028
· Targeting £50-75 million p.a. of refurbishment projects at 8%+ yield on cost
Strong balance sheet underpinned by resilient valuations
· £5,510 million portfolio valuation (Unite share), up 1.2% on a like-for-like basis (2022: £5,397 million)
· 7.4% rental growth offsetting 31bps yield expansion
· TAR of 2.9% (2022: 8.1%), reflecting 1% reduction in NTA to 920p (2022: 927p)
· Continued investment in fire safety, resulting in 9p of new commitments net of claims
· Net debt: EBITDA reduced to 6.1x (2022: 7.3x), with LTV of 28% (2022: 31%)
Delivering on sustainability targets
· Significant improvement in EPC ratings, over 99% of portfolio now A-C rated (2022: 80%)
Unite Students, the UK’s leading owner, manager and developer of student accommodation, today announces that it has entered into a joint venture (‘JV’) framework agreement with Newcastle University for the development of 2,000 new student beds.
Highlights
· Long-term strategic partnership with a Russell Group university
· Total development costs of c.£250 million (Unite share: £128 million)
· Unite to act as development and asset manager to the JV with 51% ownership share
Unite Students and Newcastle University have contracted to form a JV to develop 2,000 beds at the University’s Castle Leazes site in Newcastle for delivery in 2027 and 2028. The Castle Leazes site currently provides c.1,250 beds and was built in 1969. Newcastle University has committed to close the existing accommodation on the site and commence demolition in the summer of 2024 …
PBSA operator – Nido – partners with multi-award-winning ESG technology solutions provider – Utopi – to reduce the carbon footprint of its PBSA assets in the operator’s European portfolio, starting with Ireland and Denmark. The operator’s deployment of this technology is being delivered by managed service provider, ASK4.
Using Utopi’s multisensors and data insights platform, Nido can efficiently track the carbon impact of its PBSA assets, starting with Nido Bryggen in Denmark, Nido Ashlin House and Nido Curraheen Point in Ireland.
Through being able to measure and contextualise the energy consumption within each building, and by engaging with residents, Utopi estimates that Nido could reduce energy use and the carbon impact of the buildings by up to 20% over a three-year period …
EQT Exeter announces first investment in the French residential student market with the acquisition of two student-housing assets totalling 430 studio units. The two assets are on-track to be completed in 2025 and will offer best-in-class amenities including study areas, gyms, co-working spaces and roof terraces as well as excellent sustainability credentials which will set a new benchmark for product quality …
Subsidiary of Trinova Real Estate – Tribell – has acquired the Kirby Street Residence, a PBSA scheme in London on behalf of STARS REI. The seller LUCKY DELTA is a Hong Kong based consortium and CBRE acted on behalf of the company.
Kirby St Residence comprises 128 large studio room. Amenities includes a common room, office, outdoor courtyards, bike storage and additional commercially leased space. The development boasts stunning views of the Shard, St Pauls Cathedral, and the City of London from the upper floors …
The University of Barcelona has signed a deal for its Bellvitge Medicine and Health Sciences Campus housing PPP.
A consortium of Equitix and CyO has signed the deal which will see them design, build, finance and operate a new 206-bed block on the biomedical campus …
Partners Group, the Swiss-based global private markets firm, and DeA Capital Real Estate have formed a JV with Camplus, an operator and the leader in student housing in Italy.
Opago has officially acquired the business names [including trademarks] of the Staykeepers brand, as well as company records and intellectual property rights, marking its commitment to expansion and to addressing the challenges faced by Staykeepers before it entered administration in September and subsequently went out of business.
The acquisition is also seen as an opportunity for Opago to revive and build upon the legacy of a business which it described as “once standing out as a beacon in the intersection of the short-term rental and purpose-built student accommodation [PBSA] markets”.
By analysing the challenges faced, Opago is strategically positioning itself to implement effective technology solutions, ensuring a seamless transition that benefits both current and future stakeholders, and paving the way for a new chapter in short-term accommodation excellence …
“As well as an Operational Review of the future asset, TigerLime provided an invaluable service with excellent knowledge of the student housing sector and all work was completed on time with a great attention to detail.”
Adam Keats (Director) Canfield Freehold Ltd
