UK PBSA investment reaches £3.1bn
Investment volumes in UK purpose-built student accommodation have risen to £3.1bn during the nine months to the end of Q3, according to new data from JLL.
The amount is up on the £2.8bn of PBSA volumes seen during the same period in 2017, but below the five-year average of £3.3bn. Projected investment volumes in 2018 are expected to be in line with the five-year average.
JLL named Bristol, Leeds and Manchester as particularly attractive cities for investment during the year to date.
Investment volumes in UK purpose-built student accommodation have risen to £3.1bn during the nine months to the end of Q3, according to new data from JLL.
The amount is up on the £2.8bn of PBSA volumes seen during the same period in 2017, but below the five-year average of £3.3bn. Projected investment volumes in 2018 are expected to be in line with the five-year average.
JLL named Bristol, Leeds and Manchester as particularly attractive cities for investment during the year to date.
Key deals during Q3 included Unite’s sale of the Mayflower portfolio for £185m, and the £68.8m sale of Grosvenor House.
Philip Hillman, chairman of JLL’s alternatives team, said: “PBSA as a sector has seen continued growth across the UK.
“The direct let has increased 8% since last year and the design, build, finance and operate (DBFO) and income strip market increased by 6%.
“There are now more than 550,000 PBSA beds in the UK, with demand still outstripping supply.
“With a significant number of sales launching in the forthcoming weeks, Q4 will define the annual investment volumes,” he added.
“The reputation of academic institutions and fundamental characteristics of PBSA remain compelling and continue to drive international capital and future growth of the sector.”
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