Global private markets firm Partners Group acting on behalf of its clients, and Host Student Housing Ltd, a fully integrated developer and operator in the student and living sector and one of the largest providers of student accommodation in the UK, have formed a new £1bn UK purpose-built student accommodation (PBSA) and co-living joint venture. JLL Corporate finance advised Host on the joint venture. Host, in conjunction with Tiger Developments, is part of the O’ Flynn Group of companies which has extensive interests in the property sector in Ireland.
“Our experience over 25 years in providing student accommodation in Ireland, the UK and across Europe will clearly benefit the joint venture. This is a unique opportunity, through Host, to collaborate with Partners Group in the development of PBSA and co-Living projects. The scale of the joint venture will quickly position the JV as a leading player in a sector with significant growth potential.”Michael O’ Flynn, Chairman and CEO, O’ Flynn Group
The new joint venture is seeded with two Host-owned operational PBSA assets in Leicester and Colchester, a PBSA development project in Bournemouth, and a purpose designed co-living development project in Guildford.
“Host is excited to be working in joint venture with Partners Group. We have a shared ambition to build a new portfolio of top quality PBSA and co-living projects in the ‘Living’ sector, which offers strong sector fundamentals and growth.”John Nesbitt, Managing Director, Host
In addition, there is an immediate identified pipeline of over £250m of PBSA developments totalling over 1,000 beds in the prime Russell Group university markets of Manchester, Bristol, Edinburgh and Birmingham.
“We look forward to working with Host in this joint venture to continue to provide safe, energy-efficient assets to meet the increasing need for good value housing in key undersupplied university cities throughout the UK.”Peter Holden, Managing Director, Co-Head Real Estate Asset Management, Partners Group
Partners Group and Host intend to expand the joint venture through further developments in the PBSA and co-living sectors, creating a large and market leading portfolio of £1bn GDV. The partnership will look to bring the firms’ combined expertise, experience and financial strength to bear on other UK PBSA and co-living schemes, aimed at meeting the strong and growing demand in the living sector for high quality, sustainable, amenity-rich and professionally managed accommodation with best-in-class service.
“A return to normality and strong demand fundamentals are making the post-Covid student accommodation sector in the UK an attractive investment opportunity. The sector is a key thematic focus for us and benefits from long-term tailwinds, such as favourable population growth trends and rising enrolment rates, as well as the continued strength of the UK’s higher education offering globally. The JV has a robust pipeline, and we look forward to hosting students across some of the most dynamic cities in the country.”Rahul Ghai, Managing Director, Co-Head Private Real Estate Europe, Partners Group