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JV Launched Between Bricks and Tristan in £400m Deal

Posted by Calum Martin in , ,

Image courtesy of Flickr, Creative Commons

Six UK purpose-built student accommodation assets have been sold by property specialists Bricks Group in a £400m joint venture with a fund managed by Tristan Capital Partners.

The assets, which are comprised of 2,753 student beds, will be operated by True Student, Bricks Group's student platform. The joint venture plans to build a £750m portfolio over the next five years, set to also be managed by True Student.

Of the six developments in the deal, three are still in development. The largest of which is a 706-bed scheme in Swansea and is set to be completed in Q3 of this year. The other two are both 460-bed sites, one in Leicester and the second in Salford. These are also due to be completed in Q3 2022.

The remaining three properties in the JV are already completed and operational and are located in Birmingham, Glasgow and Salford.

Founder and chief executive at Bricks Group, Peter Prickett has stated the £750m portfolio was likely to increase.

In an interview, he said: "Of this £750m, the way the market is going, I can see that number increasing, but that's the initial target we've set."

"We have three or four other sites purchased already, outside of what we've said here, which we are starting to design and build. So we'll expect to have another £300m of assets in the coming year or so."

He added: "With our aligned culture and brand focus, there are super-exciting times ahead for the joint venture. Together, we'll make a powerful and positive impact on the student experience with a continued focus on the evolving PBSA sector."

Executive director at Tristan, Kristian Smyth said: "Our partnership with Bricks Group comes at an exciting time in the PBSA sector. We share an ambition to scale up our JV in the short term through a combination of acquisition of operating assets and de-risked development of new schemes across the UK."

"Through our Core Plus CCP 5 LL Fund, we are well-positioned to execute in this attractive growth sector as we look to grow the platform to £750m in the coming years."