Alternative real estate fund manager Arlington Advisors has acquired a 拢280m (鈧�310m) worth of UK student accommodation in a joint venture with infrastructure fund manager Equitix.
UK-based Arlington Advisors, which advises Jersey-based Arlington Investors, said it bought a portfolio from Fusion Students for more than 拢232m and an additional property from an unnamed private investor.
The five assets sold by Fusion Students, known as The Stellar Portfolio, encompass 1,857 beds in Newcastle, Nottingham, Cardiff and Bristol. They are operated by Collegiate AC.
The price paid for the additional Merlin Heights property in Leicester was not disclosed. The asset, recently built by Watkin Jones, has 601 beds and is operated by Fresh Student Living.
The acquisition adds 2,458 beds to Arlington鈥檚 purpose-built student housing portfolio, which now stands at 12,700 beds. Arlington said it was now the largest indepently-owned and sixth largest overall student accommodation platform in the UK.
Sean McKeown, managing director at Arlington Advisors, said: 鈥淭his acquisition builds on Arlington鈥檚 track record within the student accommodation asset class which continues to offer attractive investment opportunities for our investors.
鈥淲e remain committed to expanding our activity within the sector with a strong pipeline already in place for 2019, where we expect to continue acquiring high-quality assets in premier city locations.鈥�
The transaction was financed with 拢200m of 44-year senior debt from an institutional investor.
Fusion Students said the sale would enable it fund its expansion plans in the UK and overseas.
James Pullan, global head of student property at Knight Frank, which advised Fusion Students, said: 鈥淭he Stellar Portfolio is one of the highest quality portfolios ever to come to market.
鈥滻nvestment appetite was ferocious, receiving bids from all over the world.鈥�
