Greystar Real Estate Partners has acquired Capital House in Southampton from Kier Property Developments and Investec in an off-market transaction for £44m.
Capital House, situated at 1 Houndwell Place, is a 423-bed purpose-built student accommodation development located close to the city’s two major universities, the University of Southampton and Solent University.
The office-to-PBSA scheme was completed by Kier in 2018 to help meet the high demand for student housing in Southampton. The accommodation will now be operated under Greystar’s Canvas brand.
Ben Mowbray, senior director of UK investment at Greystar, said: “Capital House offers a very attractive rental proposition in a significantly undersupplied market, and we are confident that in the medium term it will deliver an attractive yield.
“Drawing on our unparalleled understanding of how students want to live, we plan in the short term to renovate underutilised amenities at the site, creating additional purposeful space that will add value to residents – and bring the offering in line with and ultimately surpass nearby properties.”
Mark Allnutt, executive director for Europe at Greystar, added: “This acquisition will expand our existing footprint in Southampton, in addition to the Student Roost-operated Vincent Place, and is a further demonstration of our long-term conviction in the UK PBSA market as an attractive investment destination.
“The acquisition marks the next step for our pan-European Canvas brand, which is focused on supporting residents during a significant period of their life by providing a safe and sustainable living environment.”
Knight Frank’s student property team advised the vendor on the deal.
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