Europa Capital (“Europa”) and Generation Estates Limited (“Generation”) are pleased to announce the launch of Europa Generation, a new joint venture created to manage a new UK student accommodation vehicle.
Europa Generation will invest in prime purpose built student accommodation (“PBSA”) throughout the UK. The acquisition strategy is focused on investment opportunities where Europa Generation identifies potential for long term sustainable income growth. The vehicle 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 £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. 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.”
Alan Artus of Generation Estates added:
“We are delighted to have formed this partnership with Europa Capital to create a vehicle 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.”
Generation Estates is working with Hattington Student Housing Ltd providing purpose built student housing expertise and development management services to two exciting projects in Dublin after co-investing in two existing schemes at 30- 36 Thomas Street, Dublin 8 and 43-53 Montpellier Hill, Dublin 7.
At Thomas Street, the joint venture partners have obtained planning consent for a 257 bed project and works on site have commenced enabling the residence to open for the 2018/19 academic year. In Montpellier Hill, the parties have submitted a planning application for a 319 bed facility which is arranged in three separate blocks. Both projects include extensive amenity areas including gym, common room, study space, film screening room, laundry, reception area as well as staff facilities and a management suite.
After twelve years in London’s west end, Generation Estates the student housing specialist has relocated into new offices in Chelsea. The new premises at 13 Radnor Walk have been leased from local property company Martins Properties. The loft style offices provide an attractive working environment close to the extensive facilities of the Kings Road.
Director Gareth Davies said: “Following the sale of Pure Student Living in March 2015 and completion of the final development in Whitechapel in August 2015, Alan Artus and I can now focus on our next venture in student accommodation. As a very established developer and operator in the student space, we no longer need a Mayfair base and are both looking forward to the move to Chelsea.”
The Carlyle Group & Generation Estates Ltd have now sold the last two assets acquired to facilitate their very successful student joint venture, Pure Student Living.
Skyline Plaza at 80 Commercial Rd is an apartment block over a ground floor showroom let to Bathstore. The ground rental income from the apartments is £30,000 per annum whilst the Bathstore unit is producing £90,000 per annum giving a combined income of circa £120,000.
The interests were marketed separately using Singer Vielle’s “clicktopurchase” platform but a single party represented by Norton Rose won the bidding paying £3,160,000 which reflects a yield of sub 3% for the ground rents and 4.5% for the Bathstore property.
Nicky Barker of The Carlyle Group said: “We have never used anything like clicktopurchase before when selling. The ease of use, speed and professionalism bought to the selling process was a delight. Above all, it helped us to deliver an impressive result but with certainty.”
Gareth Davies of Generation Estates said: “This is the second time we have sold a property using Singer Vielle’s clicktopurchase platform and yet again it has resulted in an excellent result.”
LetterOne has completed the purchase of the Pure Student Living portfolio from The Carlyle Group and Generation Estates.
This premier purpose built student accommodation business comprises 2,170 beds across five prime central London sites with an ideal geographical spread. Four of the assets located at Finsbury Park, Hammersmith, Bankside and City University are operational whilst the fifth facility at Whitechapel will deliver the final 417 rooms when it completes in August this year.
The acquisition has been structured in two phases with the operational assets transferring immediately whilst Generation are retained as development manager to complete the Whitechapel scheme.
Carlyle entered the student accommodation market in 2010 after forming the joint venture with Generation Estates and has been investing funds on behalf of its European Real Estate Fund, CEREP III.
JLL advised The Carlyle Group and Generation Estates.
The joint venture between The Carlyle Group and Generation Estates today announced the sale of 124-128 Goswell Road, Islington to West Sussex County Council Pension Fund.
The property comprises the commercial element of the development undertaken by the joint venture for City University London to provide new student accommodation, teaching space and a Sport England standard Sports Hall. The Student accommodation forms part of the Pure Student Living platform and comprises 805 new beds adjacent to the university’s Northampton Square campus.
The sports hall of circa 33,000 sq. ft. and teaching space of 19,300 sq. ft. are held by City University London on separate leases for terms of 25 years and subject to five yearly rent reviews where the rent is linked to RPI with a collar of 2% and a cap of 4.5% per annum. The purchaser acquired a long leasehold interest for a term of 127 years from 1st July 2012. The annual rent is just under £1m per annum.
“A number of institutions were keen to secure this RPI linked income stream secured against brand new accommodation on Goswell Road which is becoming a vibrant part of London in between Clerkenwell and Islington.” said Gareth Davies, Director Generation Estates.
JLL and GM Real advised The Carlyle Group and Generation Estates whilst the purchaser was represented by Aberdeen Asset Management and Knight Frank
The joint venture between the Carlyle Group and Generation Estates has forward sold its 25,000 sq. ft. office development at 122-126 Back Church Lane in Whitechapel to Boultbee Brooks for circa £12.5m. The site was acquired last year and is now under construction due for completion next summer. The joint venture which is focused on purpose built student accommodation acquired the property together with 60 Commercial Road which is being developed to provide 417 beds.
“A planning condition requiring the offices to be developed before the student accommodation could be occupied was best satisfied by a signal party undertaking both developments. The deal with Boultbee de-risks the project from our perspective allowing us to focus on the student element.” said Gareth Davies, Director Generation Estates.
The transaction was concluded following a very short and well targeted marketing campaign run by CBRE and Hatton Real Estate which produced nine offers for the property which is located in the increasingly attractive and fast changing eastern City fringe.
Following a successful transaction at Pure Hammersmith, the national gym operator, Pure Gym is leasing a new 18,000 sq. ft. facility in Pure Student Living’s building at 201 Isledon Road in Finsbury Park. The rent is in the region of £200,000 per annum and is subject to RPI linked uplifts at rent review.
The transaction was made possible following planning consent for a change of use that was obtained by Generation Estates in December 2013.
Montagu Evans acted as letting agents and planning consultants on the transaction.
Two well located new student residences have been opened by Pure Student Living. The schemes in Bankside near Tate Modern and Hammersmith add a further 568 beds to the operational platform taking total operational beds to just over 1000 whilst a further 805 beds will be delivered for City University this time next year.
Pure Bankside is very well located for Kings College Students and LSE while Pure Hammersmith provides high quality studio accommodation in west London which is perfect for students studying at Imperial College. Located on the site of the former Hammersmith Palais venue, the entrance hall pays homage to the building’s musical heritage with images of famous former performers.
Pure Student Living, the joint venture between the Carlyle Group and Generation Estates, has agreed a deal to develop a 417 bed student accommodation block in Whitchapel.
It has bought 60 Commercial Road and two nearby properties for £17m from previous owner, Derwent London.The 19 storey building, which already has planning consent is being designed by Buckley Grey Yeoman.
The joint venture has also acquired 122-126 Back Church Lane and will develop an office building of approximately 25,000 sq. ft. targeted at the TMT sector. Work is planned to start in April 2013, with completion in summer 2015 in time for the 2015/16 academic year.
Hafiz Ali, director at The Carlyle Group said: “60 Commercial Road brings our Pure Student Living portfolio in Central London to five properties and following the successful launch of our Pure Highbury scheme in 2012 means that we will have 2,150 operational beds by 2015. Commercial Road’s very central location is ideal for those studying in and around the City and complements our existing assets in north, south and west London. We believe that the fundamental imbalance in supply and demand for purpose built student housing in London presents an excellent opportunity and look forward to bringing this project forward and sourcing further investment opportunities.”
Alan Artus, director of Generation Estates added: “The acquisition of 60 Commercial Road is an important step towards our aim of developing a portfolio of 4,000-5,000 beds of high quality student accommodation in London and is a fantastic addition to our growing portfolio.”