KKR has acquired a portfolio of seven purpose-built student accommodation (PBSA) assets from Curlew Student Trust II (funded by clients of CBRE Investment Management) for approximately £230m.
The 2,179-bed portfolio is located across seven UK cities and was developed by Curlew between 2020 and 2022. The assets primarily feature en-suite units and a strong amenity provision. Approximately 80% of units are let to undergraduates and more than 50% of units are let to domestic students.
Inhabeo, KKR Real Estate’s living sector platform in Europe, will act as the asset manager for the portfolio.
Seb d’Avanzo, head of real estate acquisitions for KKR in Europe, said: “We are pleased to add a UK PBSA portfolio of rare scale and caliber to our portfolio, underscoring our conviction in high quality living spaces within our core+ strategy in Europe. Curlew have strategically developed a collection of assets with differentiated positioning in their local markets. We believe our continued investment in these properties will position them to benefit from strong enrolment in British universities and favorable tailwinds through outsized demand for modern accommodation experiences in great locations.”
Ross Netherway, CEO of Inhabeo, added: “This transaction marks another notable milestone for our European living sector platform with KKR which now exceeds £800m. We intend to continue to grow our diversified portfolio of residential investments in strategically chosen assets, subsectors, and geographies.”
Jones Day served as legal advisor to KKR on the transaction. CMS Cameron McKenna Nabarro Olswang served as legal advisor to Curlew Student Trust II.
