Starwood and Round Hill complete student buy

Starwood Capital Group and Round Hill Capital have bought a portfolio of six purpose-built student accommodation blocks across the UK for £120m. As part of the deal, the joint venture partners have also entered into a forward-funding agreement to buy a development in Newcastle. The 1,595-bed direct-let portfolio consists of the Haymarket in Edinburgh, Chestnut House in Cambridge, The Walls in Southampton, St James House in Glasgow, and Union Square and Stepney Yard in Newcastle. Starwood Capital has an established US platform of student housing, with 6,855 beds under management, and intends to expand its UK footprint. Round Hill has acquired, developed and managed more than 2,700 student housing beds. In 2015, it sold 2,378 beds to Greystar Real Estate Advisers for £600m. Zsolt Kohalmi, head of European acquisitions at Starwood Capital Group, said: “We believe that the UK is and will continue to be one of the top educational destinations for international students. “We believe that student housing offers the potential for compelling risk-adjusted return, based on a history of producing robust rental growth and maintaining high occupancy even amid the last economic crisis, and we look forward to building on this transaction to establish a sizeable student housing platform in the UK.” The portfolio will be managed through Round Hill’s Nido Collection brand. Starwood Capital Group and Round Hill were advised by Savills. • To send feedback, e-mail alex.peace@estatesgazette.com or tweet @egalexpeace or @estatesgazette