Investment management firm Harrison Street, who exclusively focuses on alternative real assets with $53bn in assets under management, announces the sale of four purpose-built student accommodation (PBSA) properties in the UK to City Developments Limited (CDL). The seller was represented by JLL, DLA and Deloitte on the transaction.
The transaction comprises four PBSA assets located in Canterbury, Birmingham, Coventry and Leeds – and totals 1,657 beds. The assets were individually developed by Harrison Street European Property Partners II (vintage year 2017), alongside two joint venture partners – Linkcity (the property development arm of Bouygues UK) and Crosslane Property Group – and ultimately packaged in a portfolio for sale. The portfolio produced an attractive return with a gross purchase price of £185m, representing 33% more than cost basis. This disposition reinforces capital markets continued demand for demographic-driven real estate, despite the broader market slowdown.
“We are pleased to partner with the high-caliber team at CDL to complete the sale of these four, high-quality PBSA assets. Thanks to the hard work and execution capabilities of our team, the portfolio produced an attractive return in a difficult macroeconomic environment, demonstrating Harrison Street’s ability to identify assets that are backed by demographic-driven trends and exit through strategic portfolio sales. We will continue investing in PBSA assets across Europe with confidence given the attractiveness of these properties in the current market environment.”Paul Bashir, Chief Executive Officer, Harrison Street Europe
Harrison Street continues to be a strong supporter of the living sectors, in particular the purpose-built student housing market. The company has invested in nearly 215,000 beds throughout North America and Europe since inception in 2005, and has invested approximately €2.5bn across nearly 55 properties in education and student housing assets throughout the UK, Ireland, France, Germany and Spain. Harrison Street has also invested over $20bn and sold over $7.5bn in student housing properties globally.
Harrison Street’s European strategy encompasses alternative investments in student accommodation, senior housing, Build to Rent and life sciences real estate. The firm’s growing and diverse European team is based in London and includes over 49 dedicated professionals, comprising 17 nationalities, speaking 18 languages. The team has acquired or developed 78 assets with a gross cost of nearly €5bn since 2015.