The sale of a purpose-built student accommodation portfolio that set a landmark value per bed has been named Sale of the Year for the East Midlands by a panel of independent judges working on the CoStar Impact Awards.
The disposal, which was the only PBSA portfolio transaction last year according to those working on it, was led by Harris Associates on behalf of 90 North Street and comprised five first-generation properties in Exeter, Leamington, Cardiff, Edinburgh and Leicester.
Totalling 795 beds, the portfolio was sold in August for circa £84 million, reflecting a net initial yield of 6.41%. Exeter One is made up of 219 beds, while The Union is a 187-bed scheme in Leamington Spa and Goods Corner in Edinburgh has 108 beds. Also included are the 146-bed City Heights building in Cardiff and the 135-bed Dover Street.
It was the first time Activum SG, the pan-European opportunistic real estate investment manager, had dipped its toe into the UK PBSA market, buying alongside student living specialist Mansion Group.
About the project: According to those behind the sale, the transaction "showcased innovative measures across marketing, touring, bid engagement and investor management".
As part of the process, the listing agent set up an interactive website to "maximise competitive tension", ditching the traditional PDF brochure. "The site wasn't just a marketing wrapper, it provided real-time insight into investor engagement and allowed us to sharpen outreach", the team said.
In addition to this, prospective investors received a unique link, enabling the consultancy to see when the site was accessed and how parties were engaging with the content, allowing the seller to accelerate meetings with groups showing the most interest in the portfolio.
There was also overcame their fair share of challenges, such as serious fire remediation and cladding issues that were not clear at the outset. The team say they resolved these issues through detailed technical engagement and informed commercial positioning.
Lettings performance considerations and the potential Scottish rent caps also emerged during the transaction window, threatening to complicate the sale. This prompted the team to work across stakeholders to "bridge positions, maintain underwriting clarity and sustain confidence through to closing".
What the judges said: Nick Hosking, director, agency and development at Innes England, said: "The only PBSA transaction of the year achieved with innovative marketing. A much more challenging deal than the others shortlisted."
They made it happen: Jamie Harris, head of student accommodation, Harris Associates; Jonathan Harris, chief executive and founder, Harris Associates; Ed Jeffs, senior asset manager, Curlew Capital; Philip Churchill, founder and managing partner, 90 North Real Estate Partners; Susan MacLachlan, partner, head of finance, 90 North Real Estate Partners; Krunal Gandhi, financial controller, 90 North Real Estate Partners.