UOL Group has acquired Varley Park, a complex of student residential halls, for GBP43.5 million ($75.7 million). The acquisition of the property, which has 771 operational beds across 22 blocks, marks UOL’s first foray into the student accommodation sector.
The acquisition was made via a sale and purchase agreement (SPA) entered with the University of Brighton. The asset comes with a leaseback agreement with the university.
“We see strong potential in the purpose-built student accommodation (PBSA) segment as it is a resilient asset class with strong fundamentals and provides opportunities for us to grow the portfolio in key markets,” says UOL Group’s chief executive Liam Wee Sin.
“We also believe that we are able to leverage our strengths in hospitality and residential development in the broader living sector, comprising PBSA, build-to-rent and serviced apartments as it is a natural extension of our core business model,” he adds.
Varley Park is located at Coldean Lane in the north-west region of Brighton, close to the University of Brighton’s Falmer campus. The complex is also located near the University of Sussex. It has transportation links to both universities.
The site is part freehold and part long leasehold of 175 years from Sept 7, 1992. The property, which measures around 28,500 sqm (306,771.45 sq ft), includes an amenity block with modern conferencing facilities and a dining hall.
See also: CDLHT sheds light on potential Liverpool PBSA on vacant plot bought for GBP1
A deposit of GBP4.35 million was paid upon the signing of the contract of sale.
Shares in UOL closed 14 cents higher or 1.96% up at $7.30 on Aug 14.
