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Gulf investors add £270m to UK student property market

Posted by Matthew Heap

Gulf investors, led by Arlington Investors, have completed a £270 million ($451 million) acquisition of eight student accommodation sites in UK. The deal is a 50/50 equity partnership with Campus Living Villages (CLV), one of the world's leading operators of student accommodation. The acquisition is the first of Arlington Investors, an investment company, based in London, which represents major families from the Middle East, a statement said.

The transaction is funded through a £210m listed bond with a 50-year maturity, which has been fully subscribed by a leading UK insurance company, the statement added.

The investment comprises eight student accommodation sites in London, Chester">ManChester, Liverpool, Leeds, Birmingham, Newport and Nottingham. There has been an increased interest from global institutional investors in UK student accommodation who see the sector as an attractive alternative asset class.

Industry analysts estimate that there is in excess of £6 billion of capital allocated to the sector with transaction levels in 2012 and 2013 consistently over £2 billion per annum.