Greystar acquires Capital House PBSA asset

Capital House will operate under Greystar’s Canvas brand, with Greystar underwriting renovations to improve the under-utilised amenity space.

Capital House in Southampton. Greystar has acquired the scheme and will operate it under its Canvas brand | PBSA News
Capital House in Southampton. Greystar has acquired the scheme and will operate it under its Canvas brand.

In an off-market opportunity, Greystar acquires Capital House, a purpose-built student accommodation (PBSA) asset from Kier Property Developments Limited and Investec. Knight Frank’s Student Property Team advised the Vendor on the deal.

The acquisition of Capital House is part of Greystar’s ongoing PBSA growth strategy in Europe – and the PBSA scheme will operate under the company’s Canvas brand. Greystar will also renovate the under-utilised amenity space to provide an improved space for residents.

“Capital House offers a very attractive rental proposition in a significantly undersupplied market, and we are confident that in the medium-term it will deliver an attractive yield.

“Drawing on our unparalleled understanding of how students want to live, we plan in the short term to renovate underutilised amenities at the site, creating additional purposeful space that will add value to residents – and bring the offering in line with and ultimately surpass nearby properties.”

Ben Mowbray, Managing Director – UK Investment, Greystar

Completed in 2018 by Kier Property Developments Limited as an office to PBSA conversion, the scheme sits close to Southampton’s two major universities – the University of Southampton and Solent University.

Capital House is also close to the city’s major amenities, which includes West Quay Shopping Centre, Southampton Football Club’s St Mary’s Stadium, Southampton Marina and Hoglands Park.

Originally developed to meet the growing demand for student housing in Southampton, strong and early leasing for the 2023/24 and 2024/25 academic years indicates Southampton will continue this trend.

“The acquisition of Capital House will expand our existing footprint in Southampton, in addition to the Student Roost-operated Vincent Place and is a further demonstration of our long-term conviction in the UK PBSA market as an attractive investment destination.

“We have a strong track record of delivering high-quality student housing in the UK, and this acquisition marks the next step for our pan-European Canvas brand, which is focused on supporting residents during a significant period of their life by providing a safe and sustainable living environment.”

Mark Allnutt, Executive Director – Europe, Greystar

Greystar currently has over 35,000 PBSA beds in the UK, a market underpinned by an imbalance in the supply of high-quality professionally managed student accommodation.

Since entering the UK PBSA market in 2013, Greystar has successfully grown its Chapter Living brand in London, built the Canvas brand in 2021, and part-owned IQ until 2020.

In December 2022, Greystar completed the acquisition of Student Roost – the UK’s third largest PBSA accommodation provider – from one of Brookfield’s real estate private funds through a joint venture partnership with global institutional investor, GIC.