The U.S. real estate company, Greystar, has purchased five large student accommodation developments in the UK from private equity company KKR; the purchase has been valued at GBP 291 million.
These five developments were first purchased by KKR in 2018 as a high-quality and professionally managed portfolio to gain a share of growing demand in a market that is slightly short of enough high-quality student accommodation.
The quartet of purpose-built student accommodation (PBSA) complexes includes 2,163 units across the UK, namely Coventry, London, Glasgow, and Bristol. Four of the five buildings have been up and running in the 2020/2021 academic year. Currently, the Bristol development is still under construction but is expected to be in operation by September of this year.
A new European brand will manage the buildings under Greystar’s ownership; the brand will be introduced to the market later this year. This acquisition is Greystar’s second PBSA purchase following iQ Student Accommodation disposal to Blackstone at the beginning of 2020 for £4.7 billion.
Bryan Cave Leighton Paisner (BCLP), the legal counsel to KKR, stated in a press release that “the UK remains one of the leading global destinations for higher education with the benefit of top-ranking universities.” This will help the company increase its assets in the UK.