BauMont Real Estate Capital, the value-add manager backed by M&G Real Estate, has acquired the Ropemaker Court purpose-built student accommodation (PBSA) scheme in Manchester for £42m in partnership with Spinnaker Estates.
The 416-bed asset will now undergo a phased refurbishment to enhance its physical, operational and energy performance.
The investment was made through BauMont’s second value-add fund, which closed last year with more than €450m in capital commitments.
Martin Towns (pictured), global head of M&G Real Estate, said: “The student accommodation sector is one of real estate’s most dynamic markets. With surging student populations that are increasingly mobile and a chronic undersupply of quality housing across major university cities, the sector offers unmatched potential for stable, long-term returns and portfolio diversification. Importantly, this is not a one-size-fits-all market. We see strong potential across a spectrum of investment strategies, from long-term core holdings to value-add opportunities, and our teams have consistently demonstrated the ability to execute across that range.
“While demand remains robust, recent occupational challenges in the UK highlight the need for selectivity and strong focus on specific asset types, prime locations, and partnerships with leading universities to ensure long-term resilience and performance. This disciplined approach allows us to shape vibrant, sustainable urban communities, while maintaining high occupancy rates and resilient rental yields. As demand continues to outpace supply, the sector’s growth trajectory is set to accelerate, making now the optimal moment for investors to capitalise on one of real estate’s most dynamic markets.”
