KKR, a leading global investor, and Inhabeo today announced the acquisition of a high-quality portfolio of seven purpose-built student accommodation (PBSA) assets from Curlew Student Trust II (funded by clients of CBRE Investment Management) for approximately £230 million.
The 2,179-bed portfolio serves students across seven UK cities with strong university presence. The properties were newly developed by Curlew Student Trust II with completion dates between 2020 and 2022. They feature primarily en-suite units, with excellent locations and attractive amenities. The portfolio has enjoyed strong demand with approximately 80% of units let to undergraduates and over 50% of units let to domestic students. The skew towards affordably-priced, high-quality schemes positions the portfolio to benefit from record domestic enrolment in UK universities.
Inhabeo, KKR Real Estate’s living sector platform in Europe, will act as the asset manager for the portfolio.
Seb d’Avanzo, Head of Real Estate Acquisitions for KKR in Europe, said: “We are pleased to add a UK PBSA portfolio of rare scale and caliber to our portfolio, underscoring our conviction in high-quality living spaces within our Core+ strategy in Europe. Curlew have strategically developed a collection of assets with differentiated positioning in their local markets. We believe our continued investment in these properties will position them to benefit from strong enrolment in British universities and favorable tailwinds through outsized demand for modern accommodation experiences in great locations.”
Ross Netherway, CEO of Inhabeo, added: “This transaction marks another notable milestone for our European living sector platform with KKR which now exceeds £800m. We intend to continue to grow our diversified portfolio of residential investments in strategically chosen assets, subsectors, and geographies.”
KKR is making the investment through its European Core+ Real Estate strategy and other managed funds and accounts. The transaction follows KKR’s recent purchases of high-quality PBSA assets across its real estate strategies, including a 544-bed Student Housing Development near the University of Warwick earlier this year, a 819-bed PBSA scheme in Bristol and a 494-bed portfolio of PBSA assets in the Greater Copenhagen area last year.
Jones Day served as legal advisor to KKR on the transaction. CMS Cameron McKenna Nabarro Olswang LLP served as legal advisor to Curlew Student Trust II.
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