Greystar JV to Expand London Student Housing Portfolio
The firm has partnered in a $461.6 million equity investment strategy along with PSP Investments of Canada and Allianz Real Estate to grow Chapter. The joint venture plans to add 10,000 beds in the next five years.
A joint venture between Greystar, the Public Sector Pension Investment Board (PSP Investments) and Allianz Real Estate, has partnered in a $461.6 million (£350 million) equity investment strategy to grow Chapter, London’s student housing accommodation brand, according to IPE Real Assets. The companies plan to double the size of the portfolio reaching 10,000 beds in the next five years.
“London’s housing market is under enormous pressure and student accommodation in prime locations is highly constrained,” Bob Faith, founder & CEO of Greystar, said in prepared remarks. “London is a global leader in higher education attracting students from around the world and Chapter is well positioned to provide quality housing in prime locations.”
The portfolio currently consists of 5,100 beds in 10 central locations throughout London including Aldgate, Islington, King’s Cross, South Bank and Spitalfields. Greystar will continue to manage the portfolio. Chapter offers amenities such as:
- on-site security
- all-inclusive utility bills and contents insurance
- room service
- on-site laundry facilities
- access to social spaces
- regular events
- Chapter London membership
Additional services include bedding packs, kitchen packs, weekly room cleaning, as well as dry-cleaning service and catered breakfast in some residences. The joint venture will soon open Chapter White at 10 Westway, Shepherd’s Bush and Chapter Highbury II at 295 Holloway Road in north London.
World’s best city for university students
London was recently named as the best city in the world for university students by QS. The city attracts an increased number of international students, with an estimated one-in-four students coming from outside of the U.K. This increase has resulted in a shortage of student housing assets in the city, demand for accommodation exceeding supply by a ratio of approximately two to one.
In another recent transaction, Greystar Realty Partners’ Greystar Student Housing Growth had a deal with income Fund LP (GEdR) to acquire EdR for $4.6 million.
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