QIP and Soilbuild JV forms £200m PBSA platform

QIP and Soilbuild form a £200m JV to create a UK PBSA platform, which will initially be seeded by two prime development opportunities.

University of York, Heslington Hall. QIP and Soilbuild JV forms £200m platform to create UK PBSA | PBSA News
University of York, Heslington Hall. Image credit: Arian Kriesch, CC BY-SA 3.0 via Wikimedia Commons.

Global Residential Living specialists Q Investment Partners (QIP) and property group Soilbuild form a £200m joint venture to create a UK purpose-built student accommodation platform (PBSA).

Together, they have capitalised and underwritten a new UK PBSA Build-to-Core Platform and are seeking to syndicate up to 45% equity with strategic LPs, of which around 50% of the assets have already been seeded.

The fund will initially be seeded by two prime development opportunities located in York and Newcastle, which will add a total of c.650 beds. Both assets are intended to be operated by Prestige Student Living, the premium brand of Homes for Students.

Newcastle student accommodation development | PBSA News
Newcastle student accommodation development.

“This partnership is a continuation of Soilbuild’s strategy of developing purpose-built schemes across the residential and business space. QIP and Soilbuild have significant expertise in providing a full spectrum of real estate solutions, and through this strategic partnership with QIP, we are leading the way to build a scalable portfolio of UK PBSA assets to address the structural undersupply of quality student accommodation in the market. PBSA continues to be a non-cyclical asset class that demonstrates its resilience through its strong fundamentals.”

Mr. Lim Han Feng, Director, Soilbuild

This partnership has developed as a result of rising demand for PBSA in the UK. Data carried out by UCAS indicates that between 2023 to 2030, there will be a 16% increase in overseas student applications.

Currently, there is not enough accommodation to meet this increasing demand. This is in tandem with the headline rental growth of PBSA, which increased by 2.6% in 2022, and is expected to exceed 5% in 2023.

York student accommodation development | PBSA News
York student accommodation development.

As demand for student accommodation continues to rise, institutional investors can foresee a bright future for the PBSA market.

“We are excited to partner with Soilbuild to launch this new UK PBSA platform. As integrated real estate businesses, QIP and Soilbuild share many of the same values and this partnership reaffirms QIP’s significant track record and expertise in the global residential living sector. 

“The PBSA sector continues to be increasingly attractive to institutional investors. This partnership demonstrates our continued commitment to the sector and will see QIP leverage our existing platform scale to address the growing demand for high-quality student accommodation in the UK. The result is an attractive proposition for QIP, Soilbuild and strategic LPs: a highly resilient and well-managed income base that translates into competitive risk-adjusted returns, stability and growth.” 

Peter Young, CEO & Co-founder, QIP

This new joint venture marks a significant step in QIP’s strategy to work with strategic, institutional partners to scale its specialist Global Residential Living Platform across the UK, US and Japan.

The QIP-Soilbuild partnership is committed to continuing to deliver quality assets in top UK cities for students and investors alike.