The Singaporean wealth fund GIC and the student accommodation developer GSA have purchased a portfolio of student halls worth £700m, representing the largest deal in the sector so far this year.
The two companies bought the portfolio from funds managed by Oaktree Capital Management, along with developer Threesixty Development.
Funds from overseas are becoming more active in the student accommodation sector as the industry becomes more established and investments are seen to be more mainstream.
An additional pipeline of 3,516 more beds that will be developed by GSA over the next three years will see the total value of the portfolio reach approximately £700m.
According to Nicholas Port, found and chairman of GSA: "Buying this portfolio gives us a platform for growth in the UK, adding to the properties we have in five cities we have already."
GSA already has properties located in Australia, China, Dubai, Germany, Ireland and Japan. The company is looking to create a global platform that will allow its residents to access properties around the world.
GIC Real Estate regional head of Europe, Madeleine Cosgrave also said: "As a long-term value investor, we believe student accommodation will be a sector that continues to deliver steady rental growth and resilient income returns amidst a challenging, low-yield environment."
GIC already has more than $100 billion of assets under its management.