Harrison Street has sold four purpose-built student housing properties in the UK to City Developments Limited (CDL). The transaction comprises four purpose-built student accommodation assets in Canterbury, Birmingham, Coventry, and Leeds with a total number of 1,657 beds. The assets were individually developed by Harrison Street European Property Partners II (vintage year 2017) alongside two joint venture partners –Linkcity and Crosslane Property Group – and ultimately packaged in a portfolio for sale. The portfolio produced an attractive return with a gross purchase price of €211.7m (£185m), which represents 33% more than cost basis. This disposition reinforces capital markets continued demand for demographic-driven real estate, despite the broader market slowdown.
Paul Bashir, Chief Executive Officer of Harrison Street Europe, said: “We are pleased to partner with the high-caliber team at CDL to complete the sale of these four, high-quality PBSA assets. Thanks to the hard work and execution capabilities of our team, the portfolio produced an attractive return in a difficult macroeconomic environment, demonstrating Harrison Street’s ability to identify assets that are backed by demographic-driven trends and exit through strategic portfolio sales. We will continue investing in PBSA assets across Europe with confidence given the attractiveness of these properties in the current market environment.”
