DWS acquires £600m student portfolio

DWS has acquired a regional portfolio of student accommodation assets from Vita Group for £600m. It comprises eight schemes with a total of 3,198 beds in Manchester, Glasgow, Edinburgh, Leeds, Birmingham and Newcastle. Five sites, with 2,078 units, are operational, while the remaining three, comprising 1,120 beds, complete this year. The development is DWS’s second foray into student housing after its acquisition of the 599-bed Kelaty House in Wembley in March. It has established the German investor as a major player within the UK’s student accommodation market. Vita Student will operate the buildings on behalf of DWS. The deal will allow Vita Group, which was previously part of Select Property, to scale its pipeline in the UK and internationally. Ronen Ribak, head of real estate transactions Europe at DWS, said: “A high-end portfolio in strong locations catering to both local and international students was critical in our decision to acquire this portfolio, and to partner with a true experience-led operator such as Vita Group.” Matthias Naumann, chief investment officer and head of strategy, alternatives, Europe at DWS, said: “The Vita Student portfolio provides a significant opportunity for DWS to further rebalance our European portfolio towards the residential sector and its sub-segments.  “It allows DWS to increase its presence in a sector offering strong long-term growth prospects, while being defensive during downturns.” [gallery type="slideshow" link="none" size="full" ids="993232,993236,993234,993237,993235,993233"] Mark Stott, chief executive of Vita Group, said: “This deal is hugely significant for both the next chapter of growth for Vita Student and the wider Vita Group, as we bring more innovative brands to market.”  Vita Student launched in 2013. The platform has 5,760 beds in 19 residences across 12 cities in the UK. It has a significant pipeline, including its first international scheme in Barcelona. Vita Group was advised by Savills and Rothschild on the transaction.     Portfolio Breakdown: First Street – Manchester – 279 units Circle Square Building 10 – Manchester – 496 units Circle Square Building 11 – Manchester – 220 units Circle Square Building 9 – Manchester – 384 units Glasgow – 501 units Strawberry Place – Newcastle – 332 units Edinburgh – 250 units St Albans – Leeds – 376 units Birmingham – 360 units To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette