KKR Acquires UK Student Accommodation Portfolio for £230 Million

KKR has acquired a UK student accommodation portfolio for £230 million. The acquisition is part of KKR's asset management business, which manages a wide range of assets including private equity funds, equity funds, and alternative credits. The purchase highlights KKR's expansion into the UK student accommodation market.

KKR, a leading global investment firm, has expanded its UK student accommodation portfolio with a significant acquisition. The firm has purchased a £230 million portfolio of seven purpose-built student accommodation (PBSA) assets from Curlew Student Trust II for approximately £230 million. This acquisition is part of KKR's Core+ strategy, which focuses on stabilized assets in established markets.

The newly acquired portfolio comprises 2,179 beds across seven UK cities with strong university presences. The properties were newly developed by Curlew Student Trust II with completion dates between 2020 and 2022. The portfolio features primarily en-suite units, excellent locations, and attractive amenities, with approximately 80% of units let to undergraduates and over 50% of units let to domestic students.

Inhabeo, KKR Real Estate's living sector platform in Europe, will act as the asset manager for the portfolio. Seb d’Avanzo, Head of Real Estate Acquisitions for KKR in Europe, commented, "We are pleased to add a UK PBSA portfolio of rare scale and caliber to our portfolio, underscoring our conviction in high-quality living spaces within our Core+ strategy in Europe." Ross Netherway, CEO of Inhabeo, added, "This transaction marks another notable milestone for our European living sector platform with KKR which now exceeds £800m."

KKR's investment in the UK PBSA sector is driven by the sector's strong demand and supply shortages. The UK PBSA market is experiencing a persistent shortfall of over 310,000 student beds, particularly in cities like London, Bristol, and Manchester. Prime PBSA schemes maintain occupancy rates above 97%, supported by the return to in-person university attendance and the sector’s relative stability compared to other real estate asset classes.

The acquisition aligns with KKR's Core+ strategy, which targets high-quality, stabilized assets in established markets. The UK student housing market is projected to grow from £7.35 billion in 2025 to £9.59 billion by 2030, driven by 17,500 new beds expected for the 2024-25 academic year.

KKR's recent acquisitions, including a 544-bed Student Housing Development near the University of Warwick and an 819-bed PBSA scheme in Bristol, demonstrate its ability to scale its Core+ playbook. The firm's forward-funding transaction with Watkin Jones for a 2,163-bed development further illustrates its proactive approach to securing assets in a competitive market.

The acquisition signals growing institutional validation of PBSA as a defensive asset class. With lenders increasingly supportive and demand outpacing supply, the sector is poised to remain a top target for Operational Real Estate (OpRE) investors.

References:
[1] https://www.ainvest.com/news/kkr-strategic-expansion-uk-pbsa-core-play-high-demand-residential-sector-2509/
[2] https://www.businesswire.com/news/home/20250903635472/en/KKR-Purchases-UK-Student-Accommodation-Portfolio-from-Curlew-Student-Trust-II
[3] https://www.marketscreener.com/news/kkr-purchases-uk-student-accommodation-portfolio-from-curlew-student-trust-ii-ce7d59dbdf81f022