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Greystar Acquires KKR Assets for £291m

Posted by Richard Ward

Image courtesy of Flickr, Creative Commons

Greystar Real Estate Partners has snapped up five student accommodation assets from KKR for £291m.

The schemes consist of 2,163 beds in London, Glasgow, Coventry and Bristol. The sites were acquired and developed by KKR in 2018 and are managed by Nido Student.

The acquisitions will form Greystar's second UK purpose-built student accommodation (PBSA) portfolio, alongside the London-focused brand Chapter. Four of the assets are already operational, with one under construction and due for occupancy in September 2021.

Commenting on the deal, Ben Mowbray, senior director, UK investment, Greystar, said: "We see potential to generate additional yield from these assets through dynamic pricing and the introduction of our world class operating platform. The fundamentals of the UK student accommodation market are still strong despite the pandemic. There was a record number of applications to higher education institutions across the country and students are adapting to a hybrid model of learning. Meanwhile there is still a structural undersupply of student accommodation to meet this demand."

Meanwhile, managing director in European Real Estate at KKR, Seb D'Avanzo, said: "These assets have helped to address the growing demand for high-quality accommodation across university hubs in the UK that provide a focus on wellbeing and community for students. We continue to see the UK as a strategically significant market for PBSA, with strong projected demand, and will continue to assess future opportunities to acquire and develop quality assets."