Investors Keep Faith In PBSA Market Despite Occupation Warnings
Investment in purpose-built student accommodation is gathering pace despite mounting development and occupation challenges, as investors bet on structural undersupply and resilient demand from domestic and international students.
Outpost Management has launched a new PBSA platform called Enclave: Student and has been appointed operating partner for BlackRock's The Store House, a 369-bedroom student scheme in Leeds.
Outpost Management and BlackRock have previously jointly developed and opened three Enclave developments in London’s King’s Cross and Acton as well as in Birmingham. Under the new Enclave: Student platform, Outpost will be responsible for the operational strategy, leasing, resident experience and day-to-day management of the asset.
Harrison Street Asset Management has agreed the sale of a 491-bed Bristol portfolio to Ottoway Portfolio Holdings. The assets, Print Hall and Unity Street, are located near the University of Bristol and comprise a mix of studios and cluster apartments delivered in 2017 and 2019.
“This transaction reflects the attractiveness of high-quality student housing as an asset class, and the continued global demand for alternative real estate in institutional-grade portfolios amid a more selective investment environment,” Harrison Street Chief Executive Of European Real Estate Paul Bashir said in a statement.
Last week, Helical announced it has conditionally exchanged contracts for a transaction that secures forward funding for a 429-bed PBSA scheme above Southwark Tube station in a deal valuing the development at over £200M on completion.
Under the agreement, a vehicle wholly owned by Places for London will forward-fund and own the scheme, which is designed by Allford Hall Monaghan Morris and will sit above the Grade II-listed station. The project will comprise 429 student studios, retail space and public realm improvements plus 44 affordable homes forward-sold to the London Borough of Southwark.
Helical said the deal would return all equity committed once Gateway 2 approval is secured, with an initial £35.2M payment due on approval and the balance payable on practical completion in 2029.
“This complex transaction is the latest example of how Helical can deploy its equity light model to generate attractive returns through the Places for London JV,” Helical Chief Investment Officer Rob Sims said in a statement.
The Southwark deal has come at the same time as Knight Frank and Cushman & Wakefield have been appointed by Union Property Developments to market Citi View, a 357-bed scheme in Paddington, seeking offers in excess of £191M.
Located at 15-25 Talbot Square, the asset has been fully operational since the start of the 2024/25 academic year and is operated by Prestige Student Living, with a gross income of £11.2M for the 2025/26 academic year, rising to £11.4M the following year, underpinned by a deal with Londonist DMC.
