Some smaller, independent student accommodation providers in the U.K. could go bust in 2021 as a consequence of the COVID-19 pandemic, offering opportunities to some larger players, according to industry experts. They provide the best home-from-home environment from which students can make the most of the opportunities open to them. Many operators are hoping January will bring the arrival or return of many students who are currently studying remotely, said Russell Hefferan, partner, student accommodation capital markets at real estate services firm Cushman & Wakefield. © 2020 Guardian News & Media Limited or its affiliated companies. "Acquisitions would be lower down our list [of priorities] than other items," he said. The firm says its rent includes wifi, access to the gym and communal areas, alongside 24-hour security, insurance and utility bills. Blackstone has struck the largest-ever private property deal in the UK by agreeing to acquire the UK student accommodation firm iQ in a £4.7bn deal. Private investment management company Blackstone acquired the accommodation provider in February in a reported £4.7bn deal. It owns and operates 67 student premises across the country, with more than 28,000 beds and plans to add a further 4,000. Goldman Sachs Merchant Banking Division and the Wellcome Trust have completed the sale of iQ Student Accommodation to Blackstone for €5.22 billion ($5.7 billion). Several of the sector's larger players offered affected students rental refunds for the period. Investor interest in U.K. student accommodation has remained strong in the face of the pandemic. "And if it is going to occur, it may well be around Q1 or Q2 next year.". Rents for en-suite accommodation have been at 16% above the rate of inflation since 2014, according to a recent report. Investors such as private equity firms and Goldman have been piling into purpose-built student housing in recent years, as demand continues to outstrip the number of beds provided by 30%. At this time we are unable to offer free trials or product demonstrations directly to students. 28,000 students Providing the best home-from-home environment from which over 28,000 students can confidently make the most of the opportunities during their university years. One of our representatives will be in touch soon to help get you started with your demo. Fill out the form so we can connect you to the right person. ", latest-news-headlines The transaction was announced in February. IQ Student Accommodation was backed by the Wellcome Trust 14 years ago. 26th February 2020, London – Goldman Sachs Merchant Banking Division (“Goldman Sachs”) and the Wellcome Trust (“Wellcome”) today announced the sale … "The, U.K. student accommodation providers have been hit particularly hard by the number of international students who chose not to come for the 2020/2021 academic year due to travel restrictions and concerns about the pandemic. The U.K. is one of the largest markets in the world for international students, who make up 20% of the total student population, 54% of full-time taught postgraduates and 49% of full-time research degree students. Empiric, which made its last acquisition in 2018, is unlikely to be tempted into the investment market should there be distressed opportunities available, said Garrood. iQ Student Accommodation 1mo We are proud to introduce the latest addition to our portfolio - Weaver Place in Coventry. Our stunning Hawley Crescent studios are smack bang in the middle of Camden, for students who want stylish independent living. “With student numbers in the United Kingdom at an all-time high, and growth set to continue in the coming years, there has never been a more exciting time to be a leading player in … If distressed opportunities do arise, there should be more than enough appetite in the market. Blackstone’s first foray into luxury student dorms came in 2006 when it created Nido with the developer Generation Estates. "International students were put off initially by the way COVID-19 seemingly wasn't taken so seriously in this country.". An en-suite room in Bloomsbury in the centre of the capital costs £460 a week. Available for everyone, funded by readers. Despite the resultant fall in demand for student beds, the sector is not expected to see any significant signs of distress before the end of 2020, Banks have "stayed their hand" in situations where student accommodation providers are in breach of either, Among those vulnerable are developers unable to secure funding due to tighter lending criteria are also exposed, said Hillman. Despite the resultant fall in demand for student beds, the sector is not expected to see any significant signs of distress before the end of 2020, said Jon Knowles, head of national capital markets at real estate services firm Colliers International. • As a result of the acquisition of Pure Student Living, iQ is now the leading owner of private purpose built student accommodation in London • Invested £21m on refurbishing 25 properties, and adding 61 new beds in Summer 2018 • We opened our brand new 272 bed development in Newcastle which was fully occupied for the 2018/19 The Blackstone Group Inc. closed a £4.7 billion acquisition, which was announced in February, of IQ Student Accommodation from Goldman Sachs Group Inc. and Wellcome Trust as the country emerged from its first national lockdown in May. Company profile page for iQ Student Accommodation Ltd including stock price, company news, press releases, executives, board members, and contact information In the past decade, iQ Student Accommodation has provided accommodation to more than 28,000 students in 67 sites across 27 UK cities. We’ve made booking your student accommodation for 2021/22 as flexible – and rewarding – as possible. Investor interest in U.K. student accommodation has remained strong in the face of the pandemic. The biggest student hub in the Midlands, Birmingham is a hive of creative ideas and is constantly innovating. There are some operators who just don't have the resources behind them. Blackstone Group Inc. agreed to buy the iQ Student Accommodation business from Goldman Sachs Group Inc. and the Wellcome Trust in the largest-ever private real estate deal in the U.K. Investors such as private equity firms and Goldman, have been piling into purpose-built student housing, High rent bills have led to student rent strikes. "If they experience financial distress, it will simply take capacity out of the market, which will probably be to our advantage," he said. Goldman's role in the deal is unsurprising given that the Wall Street bank also owns a majority stake in IQSA. Last year, 32,000 new beds were delivered across the UK of which nearly 90% were from private sector providers. UPDATE: 15th May 2020 – We can confirm the completion of the sale of iQ by Goldman Sachs Merchant Banking Division and the Wellcome Trust to Blackstone. Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. You're one step closer to unlocking our suite of comprehensive and robust tools. Goldman Sachs and Britain's biggest medical research charity are drawing up plans to float one of the country's largest providers of student housing in deal likely to value it at well over £3.5bn. The successful rollout of a COVID-19 vaccination program could also be key to putting struggling operators in "a more comfortable position with their lenders" by Q2, he said. UK student accommodation sector could see distress in 2021, Banking Essentials Newsletter December Edition, Part 2, Banking Essentials Newsletter - November Edition, University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts. Keep up-to-date on what’s going on in the iQ community, with 24/7 access to our Reading Room for the latest news, offers and events. Please contact your professors, library, or administrative staff to receive your student login. The property firm is one of the main players in the rapidly growing UK student housing market. The Blackstone Group Inc. closed a £4.7 billion acquisition, which was announced in February, of IQ Student Accommodation from Goldman Sachs Group Inc. and Wellcome Trust as the country emerged from its first national lockdown in May. The three largest listed U.K. purpose-built student accommodation providers, Unite Group PLC, Empiric Student Property PLC and GCP Student Living PLC, reported occupancy of 88%, 70%, and 69% respectively. Goldman Sachs and Wellcome sell iQ Student Accommodation to Blackstone. The company purchased a west London development site in November where it will build an 800-bed project for about £150 million. If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ. Open the door to more with iQ. A further £750 million - £1 billion of deals were expected to transact by the end of the month, at which point investment in U.K. student accommodation stood at just over £5 billion, less than £1 billion short of the record set for total annual investment in 2015. A further 114,000 beds are in the pipeline. IQ Thanks - I think form and function relate to fenestration which is required by the use proposed whether that is student accommodation, residential, hotel or office space so it will be a similar form to other proposals. London Student city guide to London With more than 20 universities and colleges, there's nowhere better to make the most of student … "They will either go bust or will have to sell very cheap. "If there is going to be distress, it's going to be focused on those smaller providers that have a quite highly geared relationship with the banks," he said. Among the larger listed players in the market, Unite Group has already been active in 2020. Rob Roger, iQ’s chief executive, said he was looking forward to “working with a partner of Blackstone’s calibre, as we continue to deliver our ambitious growth plans”. UK’s largest private property deal agreed as Goldman Sachs and Wellcome move out, Wed 26 Feb 2020 13.43 EST The short supply has been pushing up rents. Companies own and operate 18% of purpose-built student accommodation currently, while universities account for a further 18% and private rentals make up 42%. The sector has had a turbulent year following the imposition of a national lockdown in March that closed universities and prompted thousands of students to vacate their accommodation. Beyond the institutionally backed PBSA sector, private landlords who lease properties known as houses of multiple occupancy are also exposed, said Garrood. Fancy your own private bathroom and kitchen? "International. IQ Student Accommodation operates 66 sites in 27 locations, with its most recent development has just opened in Glasgow City Refer a friend and you’ll both benefit from an additional £100 cashback each. iQ Student Accommodation & Londonist partner Accommodation agency Londonist has announced a partnership with housing provider iQ Student Accommodation. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Empiric's absence from the market may mean more room for others to establish or extend their footprint in the market, but JLL's Hillman advised investors to temper their expectations of what might be on offer. THE BUSINESS TIMES iq student accommodation - Find iq student accommodation News & Headlines, insight and analysis in Singapore, Asia-Pacific & global markets news at The Business Times. Book now to receive £200 cashback. IQ Student Accommodation is one of the leading providers of student accommodation in the UK, and owns and manages 66 student premises in 27 towns and cities, catering to around 28,000 university students from all over the world. “With student numbers in the UK at an all-time high, and growth set to continue in the coming years, there has never been a more exciting time to be a leading player in the student accommodation sector.”. U.S. developer Greystar already has a small stake in the U.K. student accommodation business and is interested in buying more of the firm, according to a person familiar with the matter. "It's still not clear how many international students are actually going to turn up [this academic year]," said Philip Hillman, chairman, living capital markets at real estate services firm JLL. Between March and July, eight PBSA deals completed at a total of £280 million, according to a September report by real estate services firm CBRE. Blackstone has agreed to buy IQ Student Accommodation from Goldman Sachs for £4.7bn, in the UK’s largest private real estate transaction. Sky News has learnt that IQ Student Accommodation has hired bankers at Goldman Sachs, Morgan Stanley and Eastdil Secured, a specialist real estate adviser, to prepare for a transaction in the coming months. iQ Student Accommodation was established in 2016 and is now one of the largest providers of student accommodation in the UK. Blackstone has struck the largest-ever private property deal in the UK by agreeing to acquire the UK student accommodation firm iQ in a £4.7bn deal. /marketintelligence/en/news-insights/latest-news-headlines/uk-student-accommodation-sector-could-see-distress-in-2021-61754965 With the iQ app, you can see everything in one place, including contracts, and Pay your next rent instalment on the go. Last modified on Thu 27 Feb 2020 08.03 EST. "There will be some opportunities to make some distressed purchases," he said. 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