Goldman Sachs Alternatives and Generation Partners Acquire Two UK Student Accommodation Assets
16 December 2024 – Real Estate at Goldman Sachs Alternatives and Generation Partners today announced the $140m acquisition of two UK student accommodation assets totalling 907 beds located in the key student city hubs of Bournemouth and Cardiff. Generation will act as the asset and development manager, while dedicated student accommodation operating platform Now Student Living will act as property manager.
Both parties have significant experience in the UK PBSA (Purpose-Built Student Accommodation) sector. Goldman Sachs Alternatives previously led the establishment and was the majority investor for iQ Student Accommodation, which sold at the time for £4.67bn in 2020 in the UK’s largest ever private real estate transaction. Generation, meanwhile, has previously developed and managed some of the UK’s most successful student accommodation platforms, including Nido and Pure Student Living.
Chris Semones, Managing Director in Real Estate at Goldman Sachs Alternatives, said: “We are excited to re-enter the student market and work with Generation on the acquisition of Skyline and Bridge Street Exchange, two high-quality PBSA assets in Bournemouth and Cardiff respectively. This investment fits well with our continued conviction in the UK PBSA sector, which is supported by favourable demographic tailwinds and supply/demand fundamentals.”
Alan Artus, Chief Executive of Generation Partners, said: “With our proven track record and deep market expertise, we are well positioned to deliver the maximum value through innovative investments, and this acquisition exemplifies our dedication to creating exceptional opportunities and driving long-term value for all stakeholders.”
Paul Watson Co-Founder and Managing Director of Now Student Living, commented: “The addition of these assets to the Now Student Living platform demonstrates our dedication to the expert operation of high-quality, well-managed accommodation in prime locations, tailored to meet the diverse needs of a broad student demographic. By leveraging a talented team of sector professionals, we aim to enhance the student living experience, while ensuring a better service for both students and our strategic investment partners.”
About Generation Partners
Generation Partners is a leading developer, operator, and asset manager of purpose-built student accommodation (PBSA) in the UK and Ireland, with c. £1.25 billion in assets under management. The company has partnered with some of the world’s largest private equity and institutional investors, delivering exceptional opportunities and strong returns. Since its inception in 2002, Generation Partners has successfully invested £2.4 billion alongside multiple partners. Backed by a highly experienced team, the company has been at the forefront of the PBSA sector's evolution in the UK and Ireland, building an extensive track record of success.
About Now Student Living
Now Student Living was founded in 2023 by Generation alongside sector expert Paul Watson. With extensive experience in the operational transfer and stabilisation of existing PBSA accommodation, Now Student Living have in under 18 months built a cohesive platform with over 10,000 beds under management across the UK and Ireland.
About Real Estate at Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has over $3 trillion in assets under supervision globally as of 30th September 2024.
Established in 1991, Real Estate at Goldman Sachs Alternatives is one of the leading investors in real estate with over $60 billion in capital invested since 2012 across the spectrum of investment strategies from core to opportunistic and credit. The global team invests across all sectors with deep expertise across the capital structure, in assets ranging from single properties to large portfolios, through senior mortgages, mezzanine debt and equity.
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