Invesco Real Estate has bought a student accommodation development in Dublin, Ireland, in a deal described as possibly the first of its kind.
The asset manager has acquired The Brickworks for €47 million from Bain Capital.
Research has shown that a 4:1 student-to-bed ratio exists in the city (excluding students likely to live at home), driven by Dublin’s popularity as a place for foreign students.
The Brickworks is situated within Dublin 8, a student hub offering good access to several higher education institutions.
Expected to be completed in July 2019, it will comprise 276 student rooms along with an onsite gym, common room areas, roof terrace social space, cycle storage and a laundry area.
Alicia Edgar, an associate director at Invesco, said: “Dublin is the largest student destination in Ireland, and specifically for international students looking to study in Europe. With a significant undersupply of student beds, supportive demographics and a resurgent economy in Dublin, the investment offers an attractive opportunity to enter this market.”
George Dyer, partner at Cushman & Wakefield, which advised Invesco, said: “Across Europe, supportive demographic trends have amplified competition and activity in the student accommodation sector which has developed to become a key component of real estate investor allocations.”
Cushman & Wakefield research – which identified the 4:1 ratio – has also shown that European student accommodation transactions increased by 29% year-on-year to €13.6 billion in 2017, driven partly by rising demand for global higher education.
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