CHALLENGE

Savills was instructed by Generation Partners LLP (“Generation”) to lead the process of selecting an Investment Partner to assemble a c.£1bn Purpose Built Student Accommodation (“PBSA”) portfolio across the UK.

Generation have been pioneers in the sector, with 20 years+ experience developing and creating market leading PBSA platforms.

In light of the Covid-19 pandemic, this was an opportune time to access attractive acquisition opportunities and build a best-in-class, modern portfolio in strong university cities.

SOLUTION

Savills was instructed to run an exclusive process, with speed to ensure Generation were able to execute on the pipeline acquisition assets identified.

Savills designed a JV structure that was appropriate for Generation and approached a small number of parties who could bring the equity commitment required and were suitable for the proposed structure.

Savills led the negotiations on the JV structuring as well as provided advisory services on the off-market acquisition of the seed assets (c.£158m), which included negotiations around key terms throughout the acquisition process, creating a bespoke portfolio financial model, interrogating the business plan, and assisting with the preparation of documentation presented to the selected investor.

RESULTS

Ares Management, a leading listed US asset manager, was selected as the partner, resulting in a partnership with ambitions to assemble a portfolio of c.£1bn in the UK.

Ares is a new entrant to the PBSA market and had been looking to access the market since 2020 as part of the wider investment strategy into “Living”.

Ares and Generation continue to seek buy-side advice from Savills for their future acquisitions into the JV.