QuadReal acquires PBSA portfolio from Apollo for €578m

Global real estate firm QuadReal Property Group has purchased a portfolio of eight student housing properties, totalling 3,460 beds, from Apollo for over £500 mln (€578 mln). 

PBSA QuadReal

The properties are modern, high-quality accommodations located in major UK student cities, including London, with a significant portion near top-tier Russell Group universities. 
These purpose-built student residences (PBSA) are well-equipped with amenities such as gyms, co-working spaces, audio-visual rooms, common areas, and event spaces. 
OPRE Solutions is the asset manager for the portfolio.
Jay Kwan, managing director, Europe, at QuadReal said: "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." 
Kristian Branum-Burns, senior VP, Europe, International Real Estate, at QuadReal added: "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."
The UK PBSA market is projected to perform strongly in the coming years due to its robust fundamentals. The UK boasts the largest student population in Europe, a high number of international students, and a continuing increase in full-time student enrollment. This creates a structural undersupply of accommodation, with an estimated 840,000-unit deficit expected by 2027.
QuadReal has over 8,500 residential units and 1,000 student beds in the UK across 29 communities. Last year, it delivered more than 1,300 units, in part via its partnership with Realstar.