KWAP enters UK student sector with €44.3m acquisition

KWAP enters UK student sector with €44.3m acquisition

Kumpulan Wang Persaraan Diperbadankan (KWAP) has acquired two purpose-built student accommodations from IP Investment Management and Maven Capital Partners for a combined price of €44.3m (£39.75m). The estimated average net yield of the properties is at 5.08%.


The first asset, 800 Bristol Road in Birmingham is situated in Selly Oak and within walking distance from the University of Birmingham. Surrounding universities include Birmingham City University, Aston University and University College of Birmingham. Completed in 2016, the 4-storey freehold building provides 103 studio accommodations for students, in addition to a cinema room, function room, gym, study rooms, laundrette, secure bike storage and 11 car parks.


The second property, The Mill House in Edinburgh is situated within Edinburgh Education Corridor that is home to four universities including University of Edinburgh, Heriot-Watt University, Edinburgh Napier University and Queen Margaret University. Completed in 2017, the 6-storey freehold building provides 23 studios and 234 en-suite units, in addition to a gym, common room, games room, laundrette, secure bike storage and 12 car parks.


The acquisition of both properties brings the total number of properties owned and co-owned by KWAP to 14. Its other international properties are in Australia, London, United Kingdom and Germany. 


"We are very pleased to add the two properties to our growing portfolio in the UK market as the acquisition aligns with KWAP's aspirations to increase its international property exposure. We will continue to grow our presence in foreign markets without compromising on our risk appetite, in line with our mission to serve the pensioners of Malaysia", said Dato' Wan Kamaruzaman Wan Ahmad, Chief Executive Officer of KWAP.


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