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UBS to Forward Fund 367-Bed PBSA Scheme in Bristol

Posted by Calum Martin in ,

Image courtesy of Flickr, Creative Commons

A large 367-bed purpose-built student accommodation (PBSA) scheme in Bristol is to be forward funded by UBS Asset Management's Real Estate & Private Markets (REPM) business, as part of its UK core real estate investment strategy.

A total of £64.7m has been committed to the project, which is located in Bristol's Redcliff Quarter.

The scheme is being developed by Madison Cairn alongside contractors Winvic Construction.

Portfolio manager at UBS Asset Management, Oliver Abram, commented on the project: "A key focus area for our UK core real estate strategy is to continue to increase our exposure to the PBSA sector, targeting leading Russell group university cities across the UK.

"Bristol is one of the strongest student accommodation markets in the UK, with positive supply and demand dynamics and a limited development pipeline. This acquisition complements existing holdings within the portfolio, which have achieved consistently high occupancy levels, delivering strong income returns for the fund."

Aneil Handa, director at Madison Cairn, also commented: "Together with UBS Asset Management, we are delighted to be supporting Bristol's universities in delivering this much-needed high-quality and sustainable accommodation.

"This will be a market-leading product, underpinning our ability to unlock potential, enabling development of such an important and high-profile site, in one of the UK's most attractive cities."