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GIC buys UK student housing portfolio from Oaktree

The Singaporean SWF has teamed up with GSA to fund the portfolio, spread across 11 British cities.

Singapore’s sovereign wealth fund, GIC, and student accommodation developer GSA have bought a 7,150-bed UK student accommodation portfolio from funds managed by Oaktree Capital Management for an undisclosed amount.

The deal includes nine purpose-built properties with 3,634 beds in Liverpool, Bristol, London, Edinburgh, Cardiff and Southampton. An additional 3,516 beds in Plymouth, Portsmouth, Birmingham, Bournemouth and Cambridge form a pipeline which the pair hope to realise within 30 months.

While GIC and GSA declined to state the value of the deal, they did say it is the largest in the UK sector this year. Temasek, another Singaporean state-backed investor, agreed a £417 million ($542.8 million; €482.7 million) deal for a 5,500 bed portfolio in the UK earlier this year.

“As a long-term value investor, we believe student accommodation will be a sector that continues to deliver steady rental growth and resilient income returns amidst a challenging, low-yield environment,” Madeleine Cosgrave, Europe regional head at GIC Real Estate, said in a statement.