The Europa Generation Student Fund will invest in prime purpose built student accommodation throughout the UK. The acquisition strategy is focused on investment opportunities where Europa Generation identifies potential for long term sustainable income growth. The Fund will acquire well located assets, through forward-funding of new developments, direct development and selective investment acquisitions.
Europa Generation has used Europa’s balance sheet to acquire an initial c. €187.5m (£165m) seed portfolio, comprising 1,705 beds in six schemes currently being developed by Watkin Jones Group, a leading developer of purpose built student accommodation in the UK. The assets are situated in Oxford, Bath, Newcastle, Sheffield, Aberdeen and Bournemouth. The schemes in Bath, Newcastle, Sheffield, Aberdeen and Bournemouth are due for delivery in time for the 2018-19 academic year while the Oxford scheme will welcome students for the 2019-2020 academic year. Europa Generation intends to build a portfolio of around 5,000 beds over the next few years.
Hugo Black, Partner at Europa Capital said:“Europa Generation is being launched to capitalise on the continuing shortfall of high quality purpose built student accommodation in top tier university towns and cities across the UK as illustrated by the seed portfolio we have secured.”
Alan Artus of Generation Estates added: “We are delighted to have formed this partnership with Europa Capital to create a fund that will quickly become a leading investor in the PBSA sector in the UK. Our specialist skills and capability combined with Europa Capital’s undoubted expertise in fund management will provide investors with the opportunity to gain access to the robust long term returns available in the sector.”
Tim Turnbull, Partner at Europa Capital said: “We are very excited to have established a joint venture with Generation Estates who have an unrivalled track record in this flourishing sector. Europa Generation will provide investors with access to individuals with a first-class track record in the investment, development and operational management of PBSA assets across the UK.”