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Sunway and MBU Join Forces

Posted by Richard Ward in ,

Image courtesy of Flickr, Creative Commons

Sunway RE Capital and MBU Capital have joined forces to invest and manage purpose-built student accommodation (PBSA) in the UK.

The partnership has been pre-seeded through a combination of assets and readily deployable equity, totalling £110m.

MBU Capital will look for institutional stock predominantly within Russell Group universities, with seeded assets located in Bristol, Manchester, and Sheffield.

Commenting on the announcement, CEO of MBU Capital, Mohammed Iqbal, said: "Pre-pandemic, student occupancy rates were typically above 97%. Not only do we anticipate a bounce back in the near future, but the number of full-time students in the UK has reached a record level, and is only set to grow. This fund provides investors with the opportunity to capitalise on the compelling UK student market with an established and trusted partner."

Meanwhile, Executive Director at Sunway RE Capital, Dr. Tan Kok Heng, added: "We believe the UK is most likely to remain one of the world's most popular student hotspots and demand from overseas for high-quality education is expected to rise once travel restrictions have been lifted. We're optimistic about this sector and we've created a fund management team which has a track record of sourcing and delivering world class institutional stock."

The fund plans to exit through a real estate investment trust listing, launched within the next three years.