Heitman LLC Invests in Bath Student Development

Global real estate management firm, Heitman LLC, has announced an expansion in its portfolio, with the investment of a purpose-built student accommodation asset in Bath.

Heitman was founded in 1966 and now has upwards of $53 billion in assets under management.

The 120-bed accommodation development, dubbed the Hollis Building, is located on Lower Bristol Road.

A biodiverse green roof alongside photo-voltaic panels will feature as part of the project's energy needs.

Upon completion of the development, the scheme will be operated by Homes for Students.

The transaction was an off-market deal with leading student housing developers, the Alumno Group.

Managing Director of European real estate at Heitman, Caleb Mercer, commented: "We are pleased to continue our partnership with Alumno Group and deliver premium student housing assets for the UK's growing domestic and international student populations.

"The need for student-specific housing remains significant as demand for space continues to outpace supply."

Mercer added: "The resiliency of purpose-built student accommodation has been clearly evidenced over the past year. Demand for student housing remains intact and is expected to accelerate as the sector continues to benefit from steady occupancy gains, strong investor interest, and high barriers to entry."

Heitman senior managing director and global portfolio manager, Gordon Black, also commented: "As we continue to construct our global portfolio against the background of a volatile market, we are focused on acquiring high-quality assets that provide robust portfolio risk diversification - including by region, property type, and demand driver. The investment in Bath fits that profile as student housing continues to attract delinked demand and the UK remains a pillar of higher education globally."

Founder and managing director of Alumno, David Campbell, added: "We are delighted to be working with Heitman again on this exciting new project and building on our solid relationship. The need for good quality, purpose-built student accommodation in the UK remains very high, with the University of Bath supporting the planning application for this scheme."