QuadReal Property Group has acquired a 3,460 bedroom purpose-built student accommodation (PBSA) portfolio from funds and entities managed by Apollo for an undisclosed price.
The portfolio comprises eight UK assets. All the buildings were developed within the last five to seven years and feature gyms, co-working spaces, audio-visual rooms, common areas and event spaces.
The high-quality portfolio is comprised of assets located in key PBSA markets including London, with 75% of the portfolio situated within proximity of prestigious Russell Group universities. The asset manager for the portfolio is OPRE Solutions.
“Across our global portfolio, we are highly selective about the assets we acquire, and target markets with strong fundamentals and significant demand drivers. With resilient demand, structural undersupply, and a large cohort of international students, we have been actively looking to grow our PBSA exposure in the UK and this is an opportunity to expand our student housing platform.”
Jay Kwan, Managing Director – Europe, QuadReal
QuadReal has significant experience in the residential and student accommodation sectors. Its global portfolio includes over 65,000 residential units and 28,000 student beds, predominantly in North America and Australia.
In the UK, QuadReal has over 8,500 residential units and 1,000 student bedrooms across 29 communities and has delivered more than 1,300 units in 2024 alone, in part via its partnership with Realstar.
“This transaction is fully aligned with our fundamentals-driven residential strategy in Europe, and student accommodation is a crucial sector for us. These are high quality, amenity-rich assets servicing in-demand universities across the country, and the portfolio is well placed to deliver sustained rental growth over the coming years.”
Kristian Branum-Burns, Senior Vice President, Europe, QuadReal
The UK PBSA sector is expected to outperform other asset classes over the next few years on the back of resilient market fundamentals. The country has the largest student population in Europe, as well as the highest share of international students, with overall full-time student numbers continuing to rise. The UK market is structurally undersupplied, with an estimated shortfall of 840,000 units expected by 2027.
