UOL Group (UOL) has entered into a sale and leaseback agreement with the University of Brighton to acquire a student accommodation complex for £43.5m.
The Varley Park complex in Brighton provides 771 beds across 22 blocks in addition to an amenity block, modern conferencing facilities and a dining hall.
The investment, which marks UOL’s first foray into the student accommodation sector, is being financed through a combination of internal resources and external borrowings.
Liam Wee Sin, group chief executive of UOL, said: “We see strong potential in the purpose-built student accommodation (PBSA) segment as it is a resilient asset class with strong fundamentals and provides opportunities for us to grow the portfolio in key markets. We also believe that we are able to leverage our strengths in hospitality and residential development in the broader living sector, comprising PBSA, build-to-rent and serviced apartments as it is a natural extension of our core business model.”
