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Fund Invests £439m into Student Portfolio

Posted by Richard Ward in ,

Image courtesy of Flickr, Creative Commons

An opportunity fund dubbed the European Property Investors Special Opportunities 4 Fund (EPISO 4), has invested £439 million into a joint venture with developer-owner Downing.

The fund is advised by pan-European real estate investment manager Tristan Capital Partners and will acquire eight student assets across the UK, with a total of 3,600 beds.

The EPISO 4 fund, has purchased a 90% stake worth £439m, and consists of a 2,756-bed portfolio of six residences.

The schemes consist of West Village phase one in Glasgow, the Kingfisher in Exeter, Cityside in Leeds, Verde in Newcastle, City Village in Coventry and New Park in Edinburgh.

The joint venture is also committed to the forward-purchase of two additional residences due for completion in 2018. West Village phase two in Glasgow and Atlas in London will take the total number of beds in the portfolio to 3,644.

Downing will retain a 10% stake in the joint venture, after developing all six of the existing halls as well as the two still under construction.

Commenting on the announcement, Downing's finance director, Simon Garnett, said: "We are delighted to have completed this agreement with Tristan and look forward to working with them on this portfolio. This partnership further establishes Downing as a major player in the student accommodation sector. Our market-leading portfolio and existing immediate pipeline of developments gives us a strong presence across the UK's leading universities cities.

"We are proud of our Downing Students brand which has become a hallmark for high-quality, well-managed, innovative developments which offer outstanding pastoral care. Our experienced team will remain involved in the successful management and operation of over 5,000 beds."