Knight Frank sells Newcastle PBSA asset for £28.75m

Knight Frank facilitates a £28.75m sale of a purpose-built student accommodation (PBSA) asset in Newcastle.

Newcastle PBSA development sold by Knight Frank | PBSA News
Newcastle PBSA development sold by Knight Frank.

Global property consultancy Knight Frank has facilitated the £28.75m sale of a PBSA asset in Newcastle. Situated in the heart of the city’s vibrant Quayside area, the Newcastle PBSA property is an institutional-grade scheme comprising 416 beds.

The property offers a mix of accommodation, with 85% en-suite rooms and 15% studios, complemented by on-site amenities such as a cinema room, laundry facilities and bicycle storage.

“This opportunity provided a rare chance for investors to acquire an institutionally attractive and well located operational PBSA scheme in a prime regional market. Newcastle continues to benefit from rising student numbers and a constrained development pipeline, placing it high among investors’ target markets. We are delighted to have brokered the deal between our client and the purchaser.”

Luke Shackleton, Associate in Knight Frank’s Student Property

Knight Frank’s Student Property team advised IP Investment Management, the vendor, in the transaction involving the purchaser, Curation Capital, a UK real estate investment manager.

Curation Capital, a subsidiary of Steyn Group, has been active in the UK PBSA market recently acquiring operational assets in London, Manchester, Nottingham and Birmingham in partnership with Patron Capital. 

“We are delighted to have acquired our first PBSA asset in Newcastle, the city’s market dynamics present an attractive business case. This acquisition allows us to continue to expand and diversify our UK student accommodation portfolio. We look forward to working closely with our development and operational partners, Forge Development and Almero Student, on the repositioning of this asset.”

Michael Haverty, Partner at Curation Capital

IP Investment Management (IPIM) is a Hong Kong-based living sector real estate fund manager. It acquired the Newcastle building in 2018 as a value-add investment, adding 30 additional beds to the PBSA scheme and replacing the operator.

To date, IPIM has acquired / developed over 2,740 PBSA beds totalling over £315m of institutional quality PBSA asset in 11 UK regional markets. Previous to this disposition, the company sold two fully stabilised PBSA developments to Brookfield in Q4 2021 / Q1 2022. 

We are pleased to have worked with the team at Knight Frank to successfully execute the sale of this high-quality PBSA asset in Newcastle. The property has performed well and attracted strong interest from investors, reflecting the positive fundamentals of the UK student housing market. This transaction represents an attractive outcome for our investors, and we look forward to exploring new opportunities to continue growing our PBSA portfolio.

Selina Williams, Executive Director at IPIM

Newcastle is one of the UK’s leading regional student markets, home to two highly ranked institutions, Newcastle University and Northumbria University. The North East city has a total student population exceeding 52,000 and a low student-to-bed ratio of 2.53.

The city faces a significant lack of supply, with a staggering 60% of students unable to access Newcastle PBSA dwellings.

Recently Unite Students entered into a joint venture with Newcastle University to deliver 2,000 new student beds.