An overseas investment firm has added a major Bristol student accommodation scheme to its portfolio, doubling its total holding in the city to 600 beds across three sites and adding to the wave of investment in this specialist segment of the property market.
The firm, which has not been named but is listed on the Singapore Stock Exchange, snapped up the 301-bed Kings Square Studios, pictured, for £39.3m. 
The purpose‐built student accommodation (PBSA) block is the latest in the city to change hands as investors – many of them from overseas – look for strong post-Covid opportunities.
Kings Square Studios on Dighton Street is close to the city centre and Stokes Croft and is used by students from both the University of Bristol and UWE.
Originally an office building, it has undergone two phases of conversion to student accommodation in 2009 and 2013.
The unnamed investor said the acquisition was in line with its strategy to build a lodging platform and grow recurring income streams. It now has more than 3,500 beds across 12 properties in the UK.
The deal, on which law firm Irwin Mitchell advised, was completed against a backdrop of an increase in overall demand for higher education in the UK, despite the impact of Covid‐19.
The number of students with confirmed place in a UK university increased by 4% for the academic year 2020/21, driven by increase in domestic UK students’ enrolments, as well from international students from outside the EU.
Irwin Mitchell’s real estate team said Bristol was a strong regional city for PBSA due to its two major universities and sizeable full‐time student population.
The team was led by real estate partner Michelle Beaumont, supported by Elizabeth Cook in real estate, Stuart Tym (planning) and Padma Tadi (employment).
Michelle Beaumont said, “Demand for PBSA in the UK’s university cities is growing, despite the short‐term uncertainties posed by Covid‐19.
“Location is an important factor for investors in deciding where to invest with a number of UK cities seen as strong candidates – Bristol being one of those.
“Longer term, the demand for student housing in the UK is supported by the UK’s well‐established status as a hub of higher education with student numbers predicted to rise. We are delighted to have advised our overseas client on its expansion in this marketplace.”
Last month Student Roost, one of the largest student accommodation providers in the UK with 52 properties, entered the Bristol PBSA market for the first time by forward funding a 291-bed property at Unity Street in Bristol. Some 102 of the beds will be designated as co-living, representing the company’s first move into this sector.
