Man Circle Square
Vita is on site building three student blocks at Circle Square

Manchester student blocks sold as part of £600m portfolio

Deutsche Bank’s asset management arm DWS has acquired a portfolio of eight Vita Student buildings across the UK for £600m, including four assets in Manchester.

Vita Group, formerly Select Property Group, will continue to manage and operate the buildings on behalf of DWS.

In Manchester, the sale includes the Vita Student block at First Street, totalling 279 flats, and the three Vita properties at Circle Square, totalling around 1,100 student bedrooms.

The other assets in the sale are in Glasgow, Edinburgh, Leeds, Birmingham and Newcastle.

Vita Group said the deal will allow it to scale its growth both domestically and internationally, with a future pipeline which includes the first international Vita Student scheme in Barcelona.

Mark Stott, chief executive of Vita Group, said: “Finding the right strategic investment partner was imperative to the future of our business and I’m delighted to announce today’s news. This deal is hugely significant for both the next chapter of growth for Vita Student and the wider Vita Group as we bring more innovative brands to market.”

Matthias Naumann, chief investment officer and head of strategy at DWS, said: “The Vita Student portfolio provides a significant opportunity for DWS to further re-balance our European portfolio towards the residential sector and its sub segments. 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. It allows DWS to increase its presence in a sector offering strong long term growth prospects while being defensive during downturns. This is very much in line with the investment strategy of our funds.”

Vita Group was advised by Savills and Rothschild on the transaction.

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Big deal this with sophisticated investor – kudos to all involved.

By Oscar