EQT Exeter Completes Purchase of PBSA Portfolio

EQT Exeter has completed the purchase of a prime PBSA Portfolio, comprised of five purpose-built student accommodation assets. The transaction marks EQT Exeter's first investment in the UK PBSA market. EQT Exeter was advised by DLA Piper and Capita.

Watkins Jones agreed on the sale of the portfolio and was advised by Mishcon de Reya.

EQT Exeter Head of Student Housing Europe, Russell Petrie commented on the acquisition: "This transaction marks a significant milestone for EQT Exeter's expansion in the European student housing sector, bringing the total number of student beds in operation or in development to 5,222 and adding a new country to our European footprint.

"By selecting the best locations in undersupplied markets coupled with an unwavering focus on tenant experience, we expect these assets to be highly attractive to students by providing an environment where they can thrive both educationally and socially."

The five schemes total over 2,000 student beds and are located across Nottingham, Swansea, Bath, Bristol and Glasgow.

Watkin Jones' student accommodation group Fresh is set to manage the assets.

Strategy and Business Development Director at Fresh, Craig Bryant, commented: "These are all fantastic schemes in superb locations, and we are looking forward to bringing our award-winning student experience to our new residents in partnership with EQT Exeter. Working with Watkin Jones, we know the quality of the schemes will be high, and that they will meet the latest desires of today's students."

The three development assets in the deal are all set to achieve a BREEAM status of 'Excellent', whilst the operational assets have already achieved a 'Very Good' status.

The Bristol scheme already benefits from a 15-year lease with the University of Bristol.

Watkin Jones' Chief Investment Officer, Alex Pease, also commented: "Securing a new partner of the calibre of EQT Exeter demonstrates the strength of our end-to-end offer to enable institutional capital to access the UK's living sector, and we look forward to working closely with them into the future. This is an excellent portfolio that attracted significant investor interest, and it will give EQT a good range of highly sustainable schemes across prime university cities.

"Insight from Fresh helps us create the most desirable places in the best locations for residents, so it's great to know we will be handing these schemes over to their expert management.

"There are strong economic, social and demographic drivers behind the long-term future of UK PBSA as part of the residential for rent sector and we expect to see significant interest from institutions continue."