Barings to buy two Alumno schemes in European student housing debut
Barings has agreed to forward fund two student housing developments in London and Manchester to the tune of £43.8m.
The deal marks Barings’ first purpose-built student accommodation investment in Europe and the start of a wider “living investment” strategy in key jurisdictions including the UK, Nordics, Netherlands, Germany, Italy, France and Spain. It is targeting a €350m (£306m) investment across PBSA, build-to-rent and micro/serviced living.
Both properties are being developed by Alumno and are expected to be completed in time for the 2022/23 academic year.
Barings has agreed to forward fund two student housing developments in London and Manchester to the tune of £43.8m.
The deal marks Barings’ first purpose-built student accommodation investment in Europe and the start of a wider “living investment” strategy in key jurisdictions including the UK, Nordics, Netherlands, Germany, Italy, France and Spain. It is targeting a €350m (£306m) investment across PBSA, build-to-rent and micro/serviced living.
Both properties are being developed by Alumno and are expected to be completed in time for the 2022/23 academic year.
The London development, on Bermondsey Spa Gardens, SE1, will provide around 143 beds in cluster and studio flats, measuring 49,500 sq ft in total.
The site in Manchester will be developed into a circa 11,800 sq ft building containing 62 studio flats. It will sit within Manchester Metropolitan University’s campus.
Amenities at both will include a managed reception, indoor and outdoor multi-functional common areas, bike storage and cinema rooms.
Darren Hutchinson, managing director – head of UK real estate transactions at Barings, said: “These are two high quality PBSA assets in very strong locations in London and Manchester, which are both undersupplied markets supported by strong universities and a deep occupier demand.”
Gunther Deutsch, head of real estate transaction for Europe at Barings, said: “The UK remains one of the highest ranked countries in the world for higher education and we believe this transaction presents an opportunity to invest in two high quality schemes at an attractive entry point that will help to meet growing demand.”
David Campbell, founder and managing director at Alumno, said: “This is a huge boost for our business coming into 2021. It also highlights the confidence in bringing forward major investment into the PBSA sector, which has again demonstrated its resilience during these challenging times.”
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