Nido Student, the Round Hill Capital PBSA brand, exchanges contracts on premium London student accommodation portfolio for £600 million with Greystar.
Nido London S.à r.l. has today exchanged contracts to sell to Greystar Real Estate Partners its high-end student accommodation portfolio, for a total purchase price of approximately £600 million.11 March 2015
Nido London S.a.r.l., owned by Round Hill Capital, exchanges contracts on its 2,375 bed premium London student accommodation portfolio for £600 million with Greystar.
London, 11 March 2015 – Nido London S.à r.l. has today exchanged contracts to sell to Greystar Real Estate Partners its high-end student accommodation portfolio, for a total purchase price of approximately £600 million.
The portfolio – comprising three premium student housing assets in London’s King’s Cross, Notting Hill and Spitalfields total 2,375 beds, containing a mixture of cluster flats and large studio apartments. The portfolio has been finished to a very high specification and includes high quality communal areas, such as dining facilities, well-equipped gyms, cinema and karaoke rooms, bars and dedicated study areas – creating a class leading premium student housing experience.
Investors in Nido London S.à r.l., include the Coral Student Portfolio advised by CBRE, a financial institution, a number of overseas private stakeholders advised by Curzon Land, and Round Hill Capital.
Round Hill Capital acquired the Nido student housing portfolio from Blackstone for £415 million in May 2012 with the strategy of building it into the leading premium student housing operator in the London premium student accommodation market, at a time when the UK student housing market had not established itself as an institutionalised asset class.
Commenting on the sale, Michael Bickford, Founder and CEO of Round Hill Capital, said:
“This sale is in line with Round Hill’s strategy to invest in high quality portfolios and exploit first mover advantages, successfully generating attractive returns for our stakeholders through hands-on management and operational expertise. In establishing and successfully building the Nido brand, Round Hill has significantly increased the asset value of this portfolio. Round Hill was correct to identify student housing as an institutional investment grade opportunity well before other investors in the market.”
“London and the UK continue to be one of the most popular student destinations in the world. Demand for English language higher education is set to continue to rise, as student global mobility continues to increase – with the number of students globally predicted to double by 2025. This coupled with the industry’s continuing supply constraints and the sector’s growing and stable cash flows, leads us to believe that the student accommodation market still provides a compelling investment opportunity both within the UK and Europe.”
“The team at Nido Student Living have developed three exceptional assets which are renowned for providing students studying in London with the absolute finest level of accommodation to live, study and socialize,” said Bob Faith, Founder and CEO of Greystar.
Brett Lashley, Greystar’s UK Managing Director added, “Our purchase of Nido Spitalfields, Nido Kings Cross and Nido Notting Hill align perfectly with Greystar’s strategy and philosophy of owning and operating assets that set a new standard of service and resident experience in the student accommodation industry.”