A huge US property investment firm valued at over $10 billion is entering the UK’s purpose build student accommodation sector.
Chicago-based CA Ventures plans to invest £500m in the student sector in the UK and Republic of Ireland within the next two years. It’s already active in the Netherlands, Spain, Portugal and Italy.
Three of the first UK schemes will be:
- Glasgow: the development that will contain 422 beds, is situated next to the University of Strathclyde and within walking distance of Glasgow Caledonian University and the University of Glasgow;
- Edinburgh: 216 beds accessible to both Edinburgh Napier University and the University of Edinburgh; and
- Sheffield: the development will contain 250 beds, is adjacent to Sheffield University and within walking distance of Sheffield Hallam University.
There will also be other schemes in Belfast, Bristol and York delivered in time for the start of the 2021/2022 academic year.
The company says it’s drawn to the UK market because current demand for purpose build student accommodation outweighs supply by a ratio of three to one.
Carlo Matta, Head of European CA Ventures, says: “The UK government’s recent extension to residency rights for international students, post-graduation, is a great signal to the global student community. We see a significant opportunity in the UK, Ireland and continental Europe, to deliver a modern, high quality student living experience. Limited supply, increasing obsolescence of older product and growing university enrolment has created a very favorable supply/demand dynamic.”