Greystar jv picks up £160m Shoreditch student block

Greystar, PSP Investments and Allianz are to acquire a prime London student housing asset from Apache Capital for more than £160m. The jv partners have exchanged contracts for the 458-bedroom Paul St East, EC2, from Apache’s Social Infrastructure Investment Platform. The deal is expected to close in April 2019. Acquisition of the purpose-built student accommodation block in Shoreditch is one of the biggest single-lot transactions in the UK student accommodation sector. The asset will be managed by Greystar’s Chapter portfolio. Troy Tomasik, Greystar managing director of investments in the UK and Ireland, said: “We strongly believe that Paul St East has significant long-term potential through integrating the asset with our Chapter brand to offer students the exceptional services and experiential living enjoyed at Greystar’s other Chapter residences.” John Dunkerley, chief executive at Apache Capital Partners, said: “The sale price of Paul St East not only underlines the continued attractiveness of UK PBSA to institutional investors and the growing maturity of the sector as an asset class, but also shows the benefit of investing heavily in creating aspirational lifestyles for our residents through marketing, amenity provision and high-quality service.” Apache acquired the scheme from Ireland’s National Asset Management Agency. It was developed in a joint venture with McLaren Property and has been fully let every year since its completion. Apache will reinvest the proceeds from the sale into its build-to-rent pipeline of more than 6,500 flats in nine cities, operated by Moda Living. MTRE advised Apache Capital; JLL advised the buyers. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette