Levels of activity in the UK’s student housing investment market have remained high into 2018, with £1bn of transactions reported in the first quarter. Research by JLL outlines a continued supply and demand imbalance for PBSA, which remains highly attractive to investors due to population growth and the increasing global demand for the UK’s provision of world class higher education.
One of the major portfolio transactions in Q1 was Brookfield Property Partners’ purchase of the Curlew Portfolio for approximately £520m. Meanwhile, individual assets are also transacting indicating high demand across the investment market. Unite Students purchased 123 Fountainbridge in Edinburgh for £24m and Empiric Student Property acquired Emily Davies Halls of Residence in Southampton for £10.4m.
Coupled with the already very positive letting progress across UK residences for the 2018/19 academic year, we anticipate that the ongoing high levels of investor demand for the sector will combine to feed through to robust portfolio valuations for GSA Coral.