A global real estate investment management firm has acquired one of Bath’s largest student housing developments as the market shows no sign of slowing.
Chicago-headquartered Heitman, which has operations across North America, Europe and Asia-Pacific, snapped up the 120-bed scheme on Lower Bristol Road from London-based Alumno Group in an off-market transaction.
The scheme, pictured, known as the Hollis Building after the rundown industrial building which previously occupied the site, is one of a number of purpose-built student housing developments in the city which have sprung up in recent years.
Lower Bristol Road, in particular, has become a magnet for such schemes, despite opposition from some local residents and organisations such as Bath Preservation Trust, which fear over development.
There have also been concerns that developers and investors are concentrating on large student accommodation schemes rather than much-needed housing for families.
Heitman managing director of European real estate investment Caleb Mercer said: “We are pleased to continue our partnership with Alumno Group and deliver premium student housing assets for the UK’s growing domestic and international student populations.”
He said the need for student-specific housing remained significant as demand for space continued to outpace supply.
“The resiliency of purpose-built student accommodation has been clearly evidenced over the past year,” he added.
“Demand for student housing remains intact and is expected to accelerate as the sector continues to benefit from steady occupancy gains, strong investor interest, and high barriers to entry.” Heitman, which has more than $53bn in assets under management, serves a global client base with clients including institutions, pension plans, foundations and corporations and individual investors.
Alumno founder and managing director David Campbell added: “We are delighted to be working with Heitman again on this exciting new project and building on our solid relationship.
“The need for good quality, purpose-built student accommodation in the UK remains very high, with the University of Bath supporting the planning application for this scheme.”
