MCR Property Group has acquired a 1,163-bed purpose-built student accommodation (PBSA) portfolio in Sheffield, South Yorkshire, from Unite Group.
Westhill Hall PBSA scheme, Sheffield
The portfolio comprises three developments: Archways, Leadmill Point and Westhill Hall, which add 218, 446 and 499 beds, respectively, to MCR’s portfolio. The beds will be manged by Flow Student and bring MCR’s Sheffield PBSA portfolio to nearly 2,000 beds.
All three assets are located within one mile of either the University of Sheffield or Sheffield Hallam University.
Nick Lake, fund director at MCR, said Sheffield is a market “we know well and one where we have continued to build real scale”.
“The opportunity was particularly attractive because these assets complement our existing Sheffield portfolio and give us greater operational scale within a concentrated area,” he added.
“We see considerable potential to invest in the accommodation, particularly at Leadmill Point, while using the strength of the wider Flow platform to improve the performance of all three properties.”
Richard Bolger, head of student operations at Flow Student, said: “Sheffield is a very strong market for Flow Student.
“This additional scale allows us to build stronger operational teams, invest more effectively in the buildings and give students a wider choice of accommodation across the city.”
The deal forms part of Unite’s ongoing disposals strategy.
In its H1 results, published last month, Unite revealed it had identified 15,000 to 20,000 beds to sell, most of which are coming to the market before the end of the year. Earlier in the year, Unite said it was aiming to sell between £300m and £400m of assets.
Unite’s portfolio will focus on 20 cities, down from around 29, comprising between 55,000 and 60,000 beds, down from a portfolio of 72,000 beds.
The transaction was agreed directly between MCR and Unite, with JLL acting as selling agent.
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