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Metro and Partners Create UK PBSA Fund

Posted by Richard Ward

Image courtesy of Flickr, Creative Commons

Metro Holdings has set up a new student accommodation fund dubbed Paideia Capital UK Trust with the aim of acquiring properties in the United Kingdom.

The fund represents Metro's entry into the purpose-built student accommodation (PBSA) sector and is due to acquire its first PBSA site known as Red Queen in Warwick for £21.5m.

The Red Queen, Warwick has committed occupancy rate of around 90%. The scheme is situated 1.6km north from the main campus of the University of Warwick.

The PBSA was completed in September this year and contains 210 ensuite beds over five floors. It also comes equipped with communal spaces, study areas, a gym, cinema and lounge.

According to Metro the fund will provide a platform to pursue growth opportunities in the PBSA sector across England, Scotland, Wales and Northern Ireland.

The company suggested that the PBSA sector has a long-term advantage over commercial office and retail and remains resilient.

Commenting on the fund, Metro chairman Winston Choo said the investment will enhance the quality, diversity and income profile of Metro's investment portfolio.