Real estate investment management company – CA Ventures – announces it has closed on the disposition of its initial portfolio of 897-bed purpose-built student accommodation (PBSA) assets in the UK for a combined transaction value of approximately £161m. PGIM Real Estate provided financing solutions to support the development of the three sites, which are being acquired by funds managed by Apollo Global Management, who were advised by Savills.
“The significant level of interest in this portfolio demonstrates both the high quality of assets that our client created and continued investor interest in the resilient UK purpose-built student accommodation market.”Sonia Wang, Associate Director, Savills Capital Advisors
The announcement comes after the three PBSA communities across Sheffield, Glasgow and Edinburgh reached 100% leased in their first year. All leasing and marketing efforts were managed by CA Ventures’ in-house PBSA operating platform, Novel Student.
“Only three years after establishing our European headquarters in London, our initial PBSA portfolio has driven our swift success across three leading UK cities for students, and its record-value sale represents a strong validation of our investment thesis centred around a prime offering.”
“This milestone was made possible by the vertical integration of our expert team, who successfully managed the land acquisition, delivery, 100% lease up, operations, and sale of this state-of-the-art portfolio despite the ongoing challenges presented by the global economic environment. With another 6,000 beds across Europe in our development pipeline and the backing of institutional capital, I couldn’t be more excited for the future of CA’s European operations.”Carlo Matta, Head of European Operations, CA Ventures
The disposed assets
Hillside House (250 beds) – Sheffield University and Sheffield Hallam University
Located at 86 Winter Street, one mile from the city centre, Hillside House offers studios through to six bedroom apartments spanning 15 floors. In addition to premium in-unit amenities, Hillside House includes luxury community amenities – including a breakfast bar, karaoke room, gym, study space, wellness studio, rooftop terrace and outdoor cinema, as well as digital gaming and private dining.
Bridle Works (422 beds) – University of Strathclyde, University of Glasgow and Glasgow Caledonian University, Scotland
Located at 350 Cathedral Street, Bridle Works is 0.4 miles from Glasgow City Centre. The PBSA scheme offers studios through to five-bedroom apartments across 20 floors. Amenities include a single and dual gaming room, rooftop terrace with an outdoor BBQ, glam room, gym, private and group study space, bar area, private dining room, cinema, tea lounge and karaoke and relaxation rooms.
Silk Mill (225 beds) – Edinburgh Napier University and University of Edinburgh, Scotland
Silk Mill is located at 162 Dundee Street – 1.5 miles from Edinburgh City Centre. The PBSA scheme offers residents modern studios through to nine-bedroom apartments spanning five floors. Amenities include a reception area, breakfast bar, karaoke room, gym, digital gaming centre, bar area, private dining area, lounge, private and group study space, an outdoor courtyard including BBQ grills and an outdoor cinema.
“We are pleased to have supported CA in their inaugural PBSA development in the UK through our PGIM Real Estate Capital (PRECap) platform, the European flagship high yield debt fund series.”
“CA, with their depth of experience in this sector and their vertical arrangement, exemplifies the type of strategic sponsorship we seek, to benefit from PRECap’s bespoke and creative capital solutions. This investment in prime UK student accommodation underscores the potential opportunities in tracking the ongoing structural trends in the living sector, a key investment pillar of PGIM Real Estate.” Mathew Crowther, PRECap Senior Portfolio Manager, PGIM Real Estate
CA Ventures plans to deliver another 1,000 student beds across Edinburgh, Leicester and Belfast which will serve students during the 2022/2023 academic year. The schemes will be managed by Novel. The company has also announced joint ventures to expand its PBSA portfolio and the Novel platform to Ireland, Spain and Italy.