Valpre Capital and Katch Investment Group announced just a few days ago that they have joined together in a mission to deliver 1,500 new students beds via purpose-built student accommodation (PBSA) developments across the UK as the housing crisis continues.
The Intermediary says that the investment plan is expected to reach “a gross developmental value of around £500m.”
Why is the PBSA development important?
Mazen AbouChakra, managing partner at Valpre Capital, said: “As forward funding remains scarce, well-capitalised equity has a unique opportunity to secure high-quality PBSA developments at compelling entry points.
“Partnering once again with Katch Investment Group through this new platform gives us the scale and focus to deliver much-needed, best-in-class schemes alongside trusted developers.
The first point of the project
The initial focus of the partnership will remain on large areas like London and Bristol. The first plans for builds have been revealed and include a new 244 bed building named “The Roc Club” in Elephant and Castle, London.
Youssef Sbai, managing partner at Katch Investment Group PERE, said: “By focusing on London, Bristol, and other key regional cities, we are targeting markets with the strongest demand and working with experienced developers and operators to deliver projects that add real long-term value for students, communities, and our investors.
Further points of focus
News of when the building will commence as well as what other areas can expect an upgrade is so far unknown.
However, The Roc Club PBSA scheme at London’s Elephant and Castle and the partners said they had assembled “a strong pipeline of projects” and expected to announce further acquisitions in the near future.
They also mentioned that they intended to work with a “select group” of experienced development partners to supply “sustainable, design-led schemes offering students modern amenities and an enhanced living experience”.
Benefits for students
Essentially, more housing availability equals to less competition for students when finding a place to live, something which is crucial in times where the demand is so high.
As developers face challenges such as high construction and financing costs, as well as potential planning issues, a slowdown in building new purpose-built student accommodation (PBSA) has occurred.
Existing local housing stock that was previously available to students is increasingly being converted into private rentals, short-term lets or more recently has been sold off due to landlords leaving the market as a result of the new Renters’ Rights Bill.
Overall, these factors have been further reducing the available pool of affordable housing. So, this new project brings a lot of hope for students and developers.
