Starwood Goes After $145M Student Housing Portfolio In UK
In a hunt for yields, Starwood Capital Group just made its latest move, buying six student housing assets and one development in the U.S. for about $145M.
Starwood bought the properties with Round Hill Capital, a UK real estate investment firm, in hopes of capitalizing on the growing demand for alternative property assets, the Wall Street Journal reports. The deal includes buildings in Edinburgh, Cambridge, Southampton, Newcastle and Glasgow, along with one development slated to finish in 2018.
Investors are steadily gravitating toward alternative assets, and it’s all about the yield — prime student housing yields are about 4.6%, considerably higher than the 4.1% average return on office properties. [WSJ]