Beachrock sells Chamberlain Place PBSA to Apollo

Key Highlights:

• Beachrock sold Chamberlain Place’s purpose-built student accommodation in Birmingham to Apollo Global Management for £32.5 million. 
• The 209-bed property across from Aston University reflects a 5.75% net initial yield or £142,000 per student bedroom.
• Chamberlain Place amenities include a gym, lounge areas, study spaces, a cinema, a dining room, laundry, and bike storage. 
• The Grade II listed building was acquired and developed in 2023 by the Birmingham Property Group. 
• Expert James Pullan says the deal shows a strong institutional appetite for quality student housing assets as funding volatility reduces.

News in Detail:

Beachrock, a UK student housing consultant, sold Chamberlain Place, a Birmingham-based purpose-built student accommodation (PBSA), to Apollo Global Management. The global investment firm bought the property for £32.5 million. With 209 beds, the sale price indicates a net original yield of 5.75% or £142,000 per student bedroom.

Chamberlain Place sits across from Aston University and houses 209 students within its Grade II listed building. It sports a gym, common lounges, study spaces, a cinema lounge, a private dining hall, and laundry facilities. Bike storage for residents is also offered.

Birmingham Property Group initially bought and developed Chamberlain Place in 2023 before Beachrock took ownership. Homes, the student accommodation provider, currently manages the student housing plan for students.

James Pullan, a Beachrock partner, says the sale shows solid institutional investment interest in high-quality PBSA. Further, the demand for student housing outweighs the supply. Pullan anticipates increased investor confidence due to expected lower interest rates, predicting more deals in Q2 2024 amidst decreasing funding volatility.

Summary:

Beachrock sold Birmingham’s 209-bed student housing property, Chamberlain Place, to Apollo Global Management for £32.5 million. Developed in 2023, this purchase indicates a significant institutional tendency towards secure, quality student housing assets. Pullan suggests the sale reflects the possibility of more PBSA sales in 2024 as we see a drop in interest rates.