Mapletree Investments Pte Ltd (“Mapletree”) announces it has purchased four purpose-built student accommodation (PBSA) assets in the UK for a total consideration exceeding £165m (based on exchange rate GBP1:S$1.86 as at 30 August 2021). The assets were purchased from Vita Group, which will be engaged as the operator for the four assets under the Vita Student brand.
The assets are situated in Exeter, Bristol, Leeds and Nottingham and total 917 student beds. They are strategically located within walking distance to Russell Group Universities – as well as in close proximity to amenities such as town centres and train stations. The new acquisitions complement Mapletree’s growing student housing footprint in the UK.
“This acquisition of four high-quality assets will enhance the scale and reach of our PBSA presence in the UK. This also underscores our commitment to grow the student accommodation sector as a stable and resilient asset class, with growth anchored by strong underlying and positive demographic and student enrolment trends.
“In the aftermath of challenges faced by the sector last year during the Covid-19 pandemic, the PBSA markets in the UK and the United States (“US”) are experiencing robust recovery with schools re-opening for face-to-face lessons in the next academic year. The high vaccination rates and strong student enrolment figures in these two markets have also enabled strong pre-leasing rates of student beds for the next academic year to be achieved. Mapletree will continue to expand its global footprint in this asset class for its attractive long term growth prospects supported by strong fundamentals of domestic and international students’ demand.”Mr Chua Tiow Chye, Deputy Group Chief Executive Officer, Mapletree
The PBSA schemes include:
- Portland House in Exeter, a 156 student bed scheme built in 2014. The PBSA is 1km from the University of Exeter and 0.8km from Exeter College.
- Zed Alley in Bristol, a 132 student bed scheme built in 2014. The PBSA is 0.3km from the University of Bristol and 0.8km from the City College of Bristol.
- Station Street in Leeds, a 321 student bed scheme built in 2020. The PBSA is 0.5km from the University of Leeds and 0.1km from Leeds Beckett University.
- Portland Crescent in Nottingham, a 308 student bed scheme built in 2020. The PBSA is 3km from the University of Nottingham and 1.2km from Nottingham Trent University.
Including this latest acquisition, Mapletree’s student accommodation portfolio comprises 55 assets with over 23,000 beds located across 37 cities in the UK, the US and Canada. The total assets under management amount to approximately S$4bn. About 60% of these beds are held by Mapletree’s private fund – Mapletree Global Student Accommodation Private Trust.
“We are excited to partner strategically with Mapletree, agreeing the sale of four assets. In securing this deal, it provides the business with the capital and the confidence to continue to develop the Vita Group platform to thrive, with an ever-increasing future pipeline of projects.”Mr Mark Stott, Chief Executive Officer, Vita Group