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iQ Buys LetterOne Portfolio for £870 million

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Goldman Sachs and Wellcome Trust's iQ Student Accommodation have snapped up Pure Student Living for £870 million.

The sale attracted 11 bids for the LetterOne portfolio, with the transaction completing around 10% higher than expected.

iQ saw off competition from Urbanest with Unite, Europa Capital, and PSP with Greystar.

The deal was initially expected to be finalised in the new year, however the transaction was completed just before Christmas.

The portfolio consists of 3,644 rooms across 11 sites situated in London, Edinburgh, York, Bath and Brighton.

The acquired sites will be fully integrated and rebranded as iQ in Spring 2018.

The acquisition by iQ takes its portfolio to 28,000 rooms spread across 66 locations in the UK, thus making it the second largest owner of student accommodation in the country, with a portfolio valuation of around £3.2bn.

Commenting on the deal, Rob Roger, chief executive of iQ, said: "The opportunity to acquire Pure is part of our strategy to grow our experience driven business and we look forward to fully integrating the new sites over the coming months."

Meanwhile, head of direct investments for LetterOne, Nitin Bhandari, said: "We are proud to have assembled a portfolio of award winning properties and to have integrated them into a leading and highly profitable student accommodation business with a core focus on our customers - the students and education providers. Over the last two and a half years we have increased the efficiency of business and added new revenue streams."