[SINGAPORE] Property developer UOL is acquiring a complex of student residential halls from the University of Brighton in the United Kingdom for £43.5 million (S$75.6 million), marking its first foray into the student accommodation sector.
Varley Park, which is located in Brighton, comprises 771 operational beds across 22 blocks. The property also comes with a leaseback agreement with the university. The property, which sits on more than 2.8 hectares of land, also has an amenity block with modern conferencing facilities and a dining hall.
In a press release on Thursday (Aug 14), UOL noted that the student accommodation sector has seen robust growth in the UK due to various factors, including a growing student population, supply-and-demand imbalance and resilient income streams.
Said Liam Wee Sin, the group chief executive of UOL: “We see strong potential in the purpose-built student accommodation (PBSA) segment as it is a resilient asset class with strong fundamentals and provides opportunities for us to grow the portfolio in key markets.”
He added that UOL will be able to apply its strengths in hospitality and residential development to the broader living sector, comprising PBSA, build-to-rent and serviced apartments.
The acquisition, which is part of UOL’s strategy to diversify and strengthen its recurring income streams, is being financed through a combination of internal resources and external borrowings.
The group currently owns three other recurring-income assets in the UK. They are Pan Pacific London, 120 Holborn Island and 110 High Holborn.
Shares of UOL closed up 2 per cent or S$0.14 at S$7.30 before the announcement on Thursday.
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