Greystar acquires Capital House PBSA asset

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Key Highlights:

1. Greystar, a major student housing player, has bought Capital House, a Southampton student accommodation building, from Kier Property Developments Limited and Investec.

2. Capital House will operate under Greystar’s Canvas brand. The underused amenity spaces will be renovated by Greystar to enhance the living experience.

3. Greystar aims to grow its European purpose-built student accommodation portfolio. They view the UK student housing market as an attractive investment opportunity.

4. Capital House is situated close to the University of Southampton, Solent University, and key city amenities, addressing Southampton’s rising student housing demand.

5. Greystar currently has over 35,000 UK student beds and has been expanding student housing brands like Chapter Living, Canvas, and previously part-owned IQ. They also recently acquired Student Roost.

News in details:

Greystar, a leading provider of student housing, has acquired Capital House, a purpose-built student accommodation (PBSA) asset in Southampton, in an off-market deal from Kier Property Developments Limited and Investec. Knight Frank’s Student Property Team advised the vendor.

Capital House, an office-to-PBSA conversion completed in 2018 by Kier Property, is strategically located near the University of Southampton and Solent University. The property is also close to major amenities like West Quay Shopping Centre, Southampton Football Club’s St Mary’s Stadium, Southampton Marina, and Highlands Park.

Greystar wants to operate Capital House under their Canvas brand. They’re committed to renovating the unused amenity space to make the living experience better for residents.

Ben Mowbray, Managing Director – UK Investment at Greystar, said, “Capital House is an attractive rental place in a market without enough supply, and we believe it’ll give a good return in the medium-term.”

Discussing renovation plans, Mowbray added, “We know how students want to live, so we’ll soon renovate the unused amenities, creating more purposeful space that’ll benefit residents – making it better than nearby properties.”

Mark Allnutt, Executive Director – Europe at Greystar, emphasized their commitment to the UK PBSA market, saying, “Acquiring Capital House grows our Southampton presence, like Student Roost’s Vincent Place, showing our long-term belief in the UK PBSA market as a good investment destination.”

Allnutt added, “We have a track record of providing quality student housing in the UK, and this acquisition moves our pan-European Canvas brand forward, focused on supporting residents during an important life stage by offering a safe and sustainable living environment.”

This report highlights the strong demand for student housing in Southampton, as seen by early and robust leasing for the 2023/24 and 2024/25 academic years at Capital House.

Greystar currently operates over 35,000 purpose-built student accommodation (PBSA) beds in the UK. This is a market characterized by an undersupply of high-quality, professionally managed student housing. Since entering the UK PBSA market in 2013, Greystar has successfully grown its Chapter Living brand in London. In 2021, they launched the Canvas brand. Previously, they had partial ownership of IQ until 2020.

In a significant move last December, Greystar completed the acquisition of Student Roost – the UK’s third-largest PBSA provider – from one of Brookfield’s real estate private funds. This was done through a joint venture partnership with global institutional investor GIC.

News Summary:

Greystar, a leading student housing company, has acquired the Capital House PBSA asset in Southampton from Kier Property Developments Limited and Investec in an off-market deal. The property, to be operated under Greystar’s Canvas brand, will undergo renovations to improve amenity spaces. This acquisition is part of Greystar’s strategy to expand its PBSA portfolio in Europe. With over 35,000 beds in the UK and the recent Student Roost acquisition, Greystar aims to solidify its position in the UK’s undersupplied but attractive PBSA market.