Greystar has acquired two purpose-built student accommodation (PBSA) assets in Cardiff and Exeter for an undisclosed price.
The Neighbourhood Exeter, which opened its doors in 2018, and The Neighbourhood Cardiff (pictured), which was established in 2016, were developed and managed by Ethos Property.
The two schemes provide 400 beds and take Greystar’s UK PBSA portfolio to more than 35,000 beds. Greystar intends to undertake a proactive asset management strategy to maximise value and operate the buildings under its pan-European Canvas brand.
Ben Mowbray, managing director – Iinvestment, Greystar, said: “The acquisition of two new PBSA assets in highly sought-after locations aligns perfectly with our strategy to expand our footprint in key student markets across the UK. With the number of full-time students in the UK expected to rise to 2.5 million by 2030, the demand for high-quality, professionally managed student accommodation continues to grow and we are well-positioned to leverage these opportunities and provide secure returns for our investors while creating vibrant communities where students can thrive.
“Our focus is not just on providing beds but on creating environments where students feel safe, supported, and part of a community. With over 50,000 owned and managed student beds across our European portfolio, we understand the unique challenges faced by students and we are dedicated to delivering an exceptional university experience and ensuring their safety and welfare through our 24/7 on-site teams, high-quality amenities, and exceptional services.
“Each asset offers a high-end product with a homely feel and are a strong fit for Greystar’s Canvas student brand, which already operates in seven UK university cities. These well-amenitised and high-specification buildings provide a total of 160 beds in Exeter and 240 beds in Cardiff, offering students a comfortable and modern living environment. Both assets provide a high-end student experience with amenities such as a gym, free-to-use bikes and bike storage, a cinema room, a lounge, a karaoke room, and exclusive resident events.”
Christos Demetriou, managing director at Ethos Property, added: “The Neighbourhood represents our client’s first foray into PBSA. Ethos set out this platform in 2014, acquired land for our client in 2015 and 2016 and through, design, planning, construction and operations we are delighted to have completed that investment cycle with this sale to Greystar. With this platform we set out to provide best-in-class accommodation with a compelling and supportive student experience that reflects the premium positioning of The Neighbourhood brand.
“These values have resulted in exceptional retention rates and an unblemished record of student satisfaction. Since opening in Cardiff and Exeter, The Neighbourhood has housed over 3,000 students from over 100 different countries. We thank our team of development professionals and asset managers as well as the management team at site level, our dedicated, brilliant staff and our operating partner Collegiate for their support and dedication along the way.”
Sam Ball, partner at Beachrock, which acted for the vendor, said: “This transaction demonstrates the strength of investment demand for best-in-class PBSA. These high-quality student residences are of institutional specification with an excellent long-term occupational demand profile. It represents one transaction of many that Beachrock have brokered for vendor clients at the start of 2025. We anticipate increased investment liquidity as investors seek to capitalise on what may prove to be a very positive turning point for PBSA transactions.”
