Investment banking giant Goldman Sachs is on the verge of making a return to the UK student accommodation investment sector, four years after selling a portfolio in one of the largest deals in UK history.

Goldman is in advanced talks to buy the £200M Halo portfolio of three student blocks from insurer AIG, React News reported. It has teamed up with specialist student operator Generation, and the deal could be the first step toward the duo building a major platform in the sector, React said.

Goldman was one of the key players in building the iQ student accommodation business, which was bought by Blackstone for £4.7B in February 2020, the largest-ever private real estate deal in the UK. Goldman bought a series of individual portfolios starting in 2013, then merged its student assets with those of the investment arm of medical charity the Wellcome Trust.

The combined business then bought and built more assets before selling to Blackstone.

Student accommodation is one of the brightest spots in a generally moribund UK investment market. About £1.7B was invested in the sector in the first half of the year, according to BNP Paribas Real Estate data, up 245% from the same period last year.

The Halo portfolio comprises 1,950 beds across three assets in Bournemouth, Birmingham and Cardiff.

Savills is advising AIG on the sale and Goldman and Generation on the creation of the JV.

Bisnow is hosting the UK Student Accommodation Summit in London on 4 September, featuring speakers from Harrison Street, GSA, KKR and many more. To join, click here.