PGIM acquires UK PBSA portfolio from Unite Group

[Image: N Levajsics/Unsplash]

PGIM Real Estate has acquired a portfolio of six student residences from Unite Group providing just under 3,000 beds.

The assets are located in Birmingham, Cardiff, Leicester, Liverpool, Nottingham and Sheffield. Generation Partners will act as the asset and development manager and its operational management arm, Now Student Living, will be retained as property manager.

PGIM Real Estate plans a rolling refurbishment programme across the portfolio to modernise the accommodation and to provide best-in-class facilities. The refurbishment programme will also improve sustainability and energy efficiency with passive measures that minimise the energy demand, refurbishment of plant and the introduction of on-site renewable energy sources. 

The acquisition was made on behalf of PGIM Real Estate’s European core plus strategy.

Tobias Waldschmidt, senior portfolio manager of European core plus strategy at PGIM Real Estate, said: “In the current market environment, it’s rare to find a stabilised portfolio with high-quality yielding assets located in key regional cities. We believe the UK PBSA sector has strong underlying fundamentals as demand for student housing is only set to increase with more students applying for university.”