DIF Capital Partners signs PBSA deal with Arlington and CLV

Equity fund management company DIF Capital Partners is pleased to announce that it has closed the acquisition of a portfolio of eight purpose-built student accommodation (PBSA) assets with investment manager Arlington Advisors and Campus Living Villages (CLV).

CLV Leeds, one of the PBSA assets in the portfolio | PBSA News
CLV Leeds, one of the PBSA assets in the portfolio. Image credit: Brian Cleckner.

The eight-PBSA portfolio was acquired from a fund advised by Arlington and CLV, with DIF closing the acquisition.

In 2021, DIF acquired Arlington’s 90% share in one of these portfolios; the Goldsmiths, University of London, student accommodation PPP, with the remaining 10% stake retained by CLV. 

All other joint ventures (JVs) were acquired by a fund advised by Arlington in 2020 and the assets moved to Arlington’s in-house operator, Collegiate UK. 

The investment will be made by DIF Infrastructure VI whilst CLV will continue to operate the portfolio.

The transaction represents the long-standing partnership between Arlington and CLV which includes the acquisition of a combined c. 7,200 beds across 12 cities nationally.

The portfolio comprises of numerous PBSA assets consisting of over 4,500 rooms across seven key cities in the UK (London, Birmingham, Leeds, Manchester, Liverpool, Nottingham and Newport).

“DIF is excited to add a sizable student accommodation portfolio to DIF VI. This operational portfolio benefits from long-term relationships with universities in key UK cities and has demonstrated a strong historical track record. We recognise the important role that PBSA plays for both local and foreign students thus we look forward to working alongside high calibre educational institutions to provide accommodation for their students.”

Gijs Voskuyl, Partner and Head of Infrastructure, DIF

As the majority are freehold assets, the portfolio benefits from several fixed leases and long-term agreements with universities.

The properties have a considerable operational track record with historically high levels of occupancy driven by strong locations, well-priced rooms and close relationships with universities.

The portfolio also benefits from existing institutional financing in the form of a long-dated listed bond, which matures in 2063. 

DIF was advised by CMS, Vercity, Student First Group, Deloitte and Evolution Infrastructure.

Arlington and CLV were advised by Squire Patton Boggs, KPMG, Memery Crystal and Osborne Clark.