GSA Weighs Up PBSA Sale Or Recapitalisation But Commits To Ireland

Global Student Accommodation remains committed to the Irish market but will “let the market decide” whether it will recapitalise a €500M portfolio of five purpose-built student accommodation assets or sell them to redeploy capital elsewhere.

The assets include Ardcairn House, New Mill, The Tannery, Broadstone Hall and Kavanagh Court, all in Dublin.

Speaking to Bisnow at MIPIM in Cannes on the French Riviera, GSA Global Head of Capital Markets John Jacobs said the student housing investor and developer had been one of the pioneers of the PBSA sector in Ireland and that the company would remain an investor and operator in the country, but it is considering all options as it weighs up development and acquisition opportunities across Europe.

GSA has invested around €1B in Ireland over 10 student properties in the cities of Dublin and Cork, with a total of around 4,000 beds. Yugo, which along with GSA is part of The Dot Group, is the operator for those buildings but also operates some non-GSA assets in Ireland. 

Earlier this year, GSA also completed a €175M refinancing of four of its Irish properties with Bank of Ireland Corporate and Commercial. In August 2023, GSA refinanced two Dublin assets owned in a joint venture with long-term partner Harrison Street. Wells Fargo provided the loan, which was then GSA’s first transaction with Wells Fargo in Europe.

“Our mandate for investment is across the G20 markets, and we have recently completed deals in France and Italy, plus we see Poland as a strong opportunity,” Jacobs said. “So this is simply a case of recycling capital and looking at where the best opportunities to invest are, but we remain absolutely committed to Ireland.”

GSA has previously commented on the tough planning restrictions and high cost of construction in Ireland to develop student accommodation. But Jacobs said that he was hopeful that the state’s fresh initiatives to kick-start housing construction could also see new PBSA development viewed more favourably.

“We’ve always maintained that if you can create more beds for students, then you are freeing up housing for residents,” Jacobs said. “It’s a very simple equation, and we would be very happy to play our small part in the wider solution of trying to address the housing shortage in Ireland.”

Student specialist Dot Group has four key brands — GSA, Kinetic Capital, Yugo and Student.com — as it continues to seek further opportunities to expand, having recently taken its first steps into France and Italy.

Jacobs said that he believes that the opportunity to develop PBSA across Europe has emerged in part thanks to an international generational shift, which has seen students from around the world look for opportunities to study outside their home cities as they seek the best education and the experience of living away from home.