L&G has acquired The Place purpose-built student accommodation (PBSA) scheme in Nottingham, on behalf of L&G’s institutional retirement business, for an undisclosed price.
The 409-bed scheme, which is located to the south of Nottingham city centre, was developed by MRP and constructed by McAleer & Rushe.
It completed in August 2024 and is currently in its first operational academic year. The Place is operated by Homes For Students under its Prestige Student Living brand, which will be retained as L&G’s preferred operating partner.
Neil Dovey, head of annuity transactions at L&G said: “We are delighted to continue to deploy capital and realise the L&G student living strategy through this acquisition of The Place, Nottingham. The building demonstrates the high quality of accommodation we are looking to introduce to the market, having been developed by one of our trusted delivery partners, MRP, who share a similar vision.
“Investing in direct-let PBSA assets forms an important part of our wider residential portfolio. The sector has demonstrated strong alignment to our strategic requirements and is supported by robust demographic tailwinds and supply/demand fundamentals.”
Gareth Mee, chief investment officer, LGAS and institutional retirement at L&G, added: “Our own balance sheet is being put to positive use in the real economy – with tangible benefits across generations. These buildings provide students with quality accommodation, while the British economy benefits from long-term investing in socially productive assets.
“This investment represents an important part of the institutional retirement asset origination and allocation strategy, ensuring we can match liabilities and pay pensions in a sustainable way whilst offering good value to our corporate and pension scheme clients. We’re proud of how expertise from across the L&G business has unlocked these benefits for both the new generation, as well as the long-term future of those looking for a sustainable pension.”
Stephen Surphlis, managing director of MRP, said: “We are extremely proud of The Place which sets a new standard in the quality of purpose-built student accommodation in Nottingham to include excellent amenity space, gym facilities, private study areas, and sky lounge with external terracing.
“Having taken the decision to hold the project beyond the construction phase we have been very pleased with the strong occupancy levels achieved for The Place during its first year of operation, with this demand continuing through excellent forward bookings for the second year intake commencing September 2025.
“We look forward to continuing our successful relationship with Nottingham City Council through the development of the BTR building proposed for the balance of our Queens Road site, and wish L&G every success with their investment in The Place.”
L&G was advised by Macfarlanes. Cast advised on technical due diligence, EY advised on corporate due diligence and MTRE was acting agent.
