German asset manager DWS has reached an agreement with UK property firm Vita Group that will see it acquiring around £600 million (€648.9 million) of student accommodation assets.
The deal, made on behalf of DWS’ real estate funds, incorporates eight UK assets and will see Vita Group continue to manage and operate the buildings.
The portfolio, part of Vita Group’s “Vita Student” range, consists of 3,198 beds in Manchester, Glasgow, Edinburgh, Leeds, Birmingham, and Newcastle.
Three of these assets will complete construction “imminently”, according to Vita Group. All assets are purpose built and in prime city centre locations, the firm also said.
Vita Student was set up in 2013 to offer student accommodation consisting of nearly 6,000 beds in 19 residences across different cities in the UK.
“With demand for higher education growing globally, we expect UK universities to continue to attract students from both the UK and overseas, despite current uncertainties,” said Matthias Naumann, chief investment officer and head of strategy for alternatives at DWS.
For DWS, this acquisition further expands its presence and expertise in the Purpose Built Student Accommodation (PBSA) sector and follows the recent forward purchase of a large scale scheme in Wembley, London.
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