Pair of Liverpool student assets sold by HSBC in £165m portfolio deal

The Arch and The Electra, totalling 341 units, have been acquired by a JV between Aboria Capital and Partners Group, along with schemes in Newcastle, London and Cambridge.

In total the £165m portfolio deal comprises 1,570 PBSA units across four cities operated by Downing that are 98.2% let for the current academic year and previously owned by HSBC Asset Management.

• The Arch, Liverpool – 241 beds

• The Electra, Liverpool – 90 beds

• The View, Newcastle – 444 beds

• The Lyra, London – 209 beds

• The Railyard, Cambridge – 586 beds.

The transaction marks Aboria’s first acquisition since the platform was launched in partnership with the Downing family office earlier this year. Partners Group is the majority investor.

Henrik Orrbeck, global co-head of real estate at Partners Group, said: “We have strong conviction in this portfolio, with each of the assets strategically located across the UK’s leading university cities.

“We have a track record in the student accommodation space and continue to see strong relative value in the UK market, reflecting the country’s leading university offering and structural shortage of high-quality accommodation stock. We are pleased to close this latest investment in our real estate secondaries strategy, which adds to recent transactions across the industrials and logistics sectors globally.”

Jessica Hardman, chief executive of Aboria Capital, said: “This is an exceptional portfolio of scale and quality, made even more compelling by the depth of knowledge we already have of the assets. Our vertically integrated model means we are close to every asset from day one, aligning investment strategy with day-to-day operations. That allows us to protect and grow income, sustain occupancy and identify opportunities to create value throughout the investment lifecycle.

“The strength of investors backing Aboria for this acquisition reflects the enduring appeal of UK student housing to global institutional and private wealth capital. The UK combines a world-leading university sector with resilient student demand and a persistent shortage of high-quality accommodation, creating compelling long-term fundamentals. We look forward to investing in these assets and enhancing the experience for the students who call them home.”

Tim Williams, head of real estate investment at HSBC Asset Management, added:  “We are pleased to complete this transaction following an extended hold period.

“Having acquired many of the assets through funding and development, the sale delivers a positive return of capital to our investors. Throughout our ownership, the portfolio has consistently achieved strong occupancy levels, reflecting the quality of the locations, the strength of our university partnerships, and the expertise of the management team.”

HSBC Asset Management was advised by CBRE and Pinsent Masons.