Canadian Investor In Talks To Buy £675M UK Student Portfolio
Canadian pension fund La Caisse is in talks to buy a nine-asset UK student accommodation portfolio in one of the largest deals for the sector over the past few years.
La Caisse has agreed to buy the portfolio from DWS, Green Street News reported. It is buying the portfolio alongside its current operator, Vita, which also developed the assets.
The portfolio comprises 3,200 beds across four properties in Manchester, one in Glasgow, one in Edinburgh, one in Newcastle, one in Leeds and one in Birmingham. The assets are all operational and have seen good performance and rental growth, Green Street reported.
DWS originally bought the portfolio from Vita for £600M in 2019. Savills and JLL are advising DWS on the sale.
The deal will be closely watched by the student sector and the market more broadly. The portfolio was originally put on the market for £750M, meaning a sale at £675M would be a 10% reduction on the asking price. But the fact that such a large transaction is happening at all is a welcome sign for dealmakers.
Arboria and Stepstone were underbidders on the portfolio. La Caisse and Arboria also bid together earlier this year on a £600M UK student portfolio being sold by fund manager Tristan Capital.
La Caisse, formerly known as Ivanhoé Cambridge, has 43B Canadian dollars (£23B) of real estate assets globally and has invested in the European living sector through its €1.2B (£1B) Cohabs coliving platform.
The UK student sector is at something of an inflection point, with strong post-pandemic rental and occupational growth slowing, due to rising costs and a slowdown in international students.
