iQ acquires and forward funds PBSA development in Warwick

iQ Student Accommodation agrees to forward fund Topland Vintage Group on a new PBSA scheme near the University of Warwick.

Concept image for the iQ Student Accommodation PBSA development adjacent to the University of Warwick | PBSA News
Concept image for the iQ Student Accommodation PBSA development adjacent to the University of Warwick.

Purpose-built student accommodation (PBSA) provider iQ Student Accommodation – which is 100% owned by funds managed by Blackstone – has agreed to acquire and forward fund investment company Topland Vintage Group on the development of a PBSA and co-living campus in Warwick.

The 1,209-bed scheme will deliver 1,078 PBSA beds adjacent to the University of Warwick campus, which is ranked the 10th best university and the second-best business school in the UK.

Featuring 6,000 sq ft of retail space, the development will offer many residential amenities including study lounges, game lounges, a TV lounge, private dining rooms, a gym and yoga studio.

“This acquisition represents the next step in our growth story, as we continue to expand our portfolio in the UK’s most successful university locations – where student demand is highest. This outstanding development, which is ideally located for University of Warwick students, will bring iQ’s offer of high-quality, well-located accommodation, as well as its focus on delivering an outstanding living experience to more students.”

Matt Merrick, CEO, iQ Student Accommodation

Planning consent for the campus was approved in December 2022 and construction is due to start at the end of this year.

Warwick is struggling with the current supply and demand imbalance, as there are 10x as many students as private beds.

“We have owned this site since 2013 which was fully occupied by Barclays Bank Plc. Following their departure, we recognised the opportunity to create value by obtaining a planning consent for 1,209 student beds and we are delighted to bring the vision to fruition with iQ and McLaren. We are working on other student sites which will come forward in the future.”

Sol Zakay, CEO, Topland Vintage Group

This development will help to reduce this undersupply and provide more students with convenient and high-quality accommodation close to the University of Warwick’s vibrant campus.

“McLaren are delighted to have brought this scheme forward with Topland. The forward funding represents an excellent opportunity for McLaren to continue to develop relationships with iQ. This development will represent the largest privately owned PBSA scheme in the vicinity of the University of Warwick. We look forward to starting on site later in the year and delivering Phase one for 2025 and Phase two for 2026.”

Bruce Ruddle, Development Director, McLaren Property

iQ will partner with Topland Vintage Group and McLaren Property to deliver the development in two phases, with the first phase expected to complete in 2025 and the second phase following in 2026.

Earlier in the year, Jensco sold their Nottingham-based Ten Traffic Street PBSA scheme to iQ, with the deal expected to complete by the end of June.