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Student Tribe Set for Expansion

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Student Tribe is looking to raise funds so that it can expand its portfolio of student accommodation.

The company was established in 2016 by chief executive officer Calum Maclnnes, in response to poor standards of accommodation in privately-rented student houses.

Student Tribe currently operates 15 properties in Leeds, Manchester and Birmingham, and the funds raised will enable the business to purchase a portfolio of 27 homes in Manchester.

With the houses in multiple occupation (HMO) sector facing an increasing amount of legislation, it is hoped smaller players will exit the market, providing a pipeline of acquisitions. Student Tribe is aiming to capitalise on this and will add to its portfolio over the next five years as it builds a brand with scale.

Connection Capital is helping to facilitate the fundraise and sees it as an opportunity to gain exposure to UK residential property.

Commenting on the HMO market, Claire Madden, managing partner at Connection Capital said: "Now that the buy-to-let tax regime has become more onerous, this deal offers an alternative and rewarding way to invest in residential bricks and mortar. By backing an established operator in the in-demand student homes market, the opportunity is expected to generate impressive returns via income yield and scope for capital growth."

She added: "Assets like the Manchester portfolio Student Tribe is acquiring rarely come onto the market, so this is a significant opportunity for the business to achieve scale efficiently. We're confident that Student Tribe have got what it takes to carve out a market-leading position in this exciting niche."