Rob Roger, iQ’s chief executive, said he was looking forward to “working with a partner of Blackstone’s calibre, as we continue to deliver our ambitious growth plans”. Please contact your professors, library, or administrative staff to receive your student login. "There will be some opportunities to make some distressed purchases," he said. The New York-based private equity firm is buying iQ from the US investment bank Goldman Sachs and the health research charity Wellcome Trust. "There will, S&P Global China Credit Analytics Platform, Differentiated Data to Make Informed Decisions. “With student numbers in the UK at an all-time high, and growth set to continue in the coming years, there has never been a more exciting time to be a leading player in the student accommodation sector.”. "They will either go bust or will have to, Beyond the institutionally backed PBSA sector, private, Empiric, which made its last acquisition in 2018, is unlikely to be tempted into the investment market should there be distressed opportunities available, said Garrood. Investor interest in U.K. student accommodation has remained strong in the face of the pandemic. We noticed you've identified yourself as a student. Blackstone Group Inc. agreed to buy the iQ Student Accommodation business from Goldman Sachs Group Inc. and the Wellcome Trust in the largest-ever private real estate deal in the U.K. "The opportunity for distress is, unfortunately, clearly there for smaller operators of smaller properties," said Garrood. Don’t miss out – just download the iQ app as soon as you check-in to your iQ room. Refer a friend and you’ll both benefit from an additional £100 cashback each. iQ Student Accommodation & Londonist partner Accommodation agency Londonist has announced a partnership with housing provider iQ Student Accommodation. "But nobody is predicting a huge wave of distress like what you are seeing in the retail and hospitality sectors. Several of the sector's larger players offered affected students rental refunds for the period. It also offers student digs in other leading university cities such as Manchester, Leeds, Sheffield, Edinburgh and Birmingham. Many operators are hoping January will bring the arrival or return of many students who are currently studying remotely, said Russell Hefferan, partner, student accommodation capital markets at real estate services firm Cushman & Wakefield. At iQ, rents start at £75 a week in Bradford, and £195 a week in London. Some of the iQ accommodation being built is vastly different from traditional student halls and includes studio flats or en-suite rooms, fast broadband, on-site gyms and cinemas. "International students were put off initially by the way COVID-19 seemingly wasn't taken so seriously in this country.". In the past decade, iQ Student Accommodation has provided accommodation to more than 28,000 students in 67 sites across 27 UK cities. If distressed opportunities do arise, there should be more than enough appetite in the market. Last year, 32,000 new beds were delivered across the UK of which nearly 90% were from private sector providers. Much will depend on what happens at the beginning of 2021. IQ Student Accommodation operates 66 sites in 27 locations, with its most recent development has just opened in Glasgow City Investor interest in U.K. student accommodation has remained strong in the face of the pandemic. The successful rollout of a COVID-19 vaccination program could also be key to putting struggling operators in "a more comfortable position with their lenders" by Q2, he said. If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ. Available for everyone, funded by readers. “With student numbers in the United Kingdom at an all-time high, and growth set to continue in the coming years, there has never been a more exciting time to be a leading player in … Despite the resultant fall in demand for student beds, the sector is not expected to see any significant signs of distress before the end of 2020, Banks have "stayed their hand" in situations where student accommodation providers are in breach of either, Among those vulnerable are developers unable to secure funding due to tighter lending criteria are also exposed, said Hillman. IQ Thanks - I think form and function relate to fenestration which is required by the use proposed whether that is student accommodation, residential, hotel or office space so it will be a similar form to other proposals. They provide the best home-from-home environment from which students can make the most of the opportunities open to them. "The, U.K. student accommodation providers have been hit particularly hard by the number of international students who chose not to come for the 2020/2021 academic year due to travel restrictions and concerns about the pandemic. © 2020 Guardian News & Media Limited or its affiliated companies. The transaction was announced in February. Between March and July, eight PBSA deals completed at a total of £280 million, according to a September report by real estate services firm CBRE. "It's still not clear how many international students are actually going to turn up [this academic year]," said Philip Hillman, chairman, living capital markets at real estate services firm JLL. You're one step closer to unlocking our suite of comprehensive and robust tools. An en-suite room in Bloomsbury in the centre of the capital costs £460 a week. One of our representatives will be in touch soon to help get you started with your demo. Rents for en-suite accommodation have been at 16% above the rate of inflation since 2014, according to a recent report. 26th February 2020, London – Goldman Sachs Merchant Banking Division (“Goldman Sachs”) and the Wellcome Trust (“Wellcome”) today announced the sale … A further 114,000 beds are in the pipeline. The U.K. is one of the largest markets in the world for international students, who make up 20% of the total student population, 54% of full-time taught postgraduates and 49% of full-time research degree students. The U.K. is one of the largest markets in the world for international students, who make up, [this academic year]," said Philip Hillman, chairman, living capital markets at real estate services firm JLL. The first Nido tower, with 1,000 beds, was opened that year in King’s Cross, London, followed in 2010 by a 33-floor tower in Spitalfields, east London with a 24-hour gym and a pizza vending machine. UK student accommodation sector could see distress in 2021, Banking Essentials Newsletter December Edition, Part 2, Banking Essentials Newsletter - November Edition, University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts. The agency now has over 33 residences in … Keep up-to-date on what’s going on in the iQ community, with 24/7 access to our Reading Room for the latest news, offers and events. The transaction remains subject to regulatory approval. Among those vulnerable are developers unable to secure funding due to tighter lending criteria are also exposed, said Hillman. IQ Student Accommodation is one of the leading providers of student accommodation in the UK, and owns and manages 66 student premises in 27 towns and cities, catering to around 28,000 university students from all over the world. Despite the resultant fall in demand for student beds, the sector is not expected to see any significant signs of distress before the end of 2020, said Jon Knowles, head of national capital markets at real estate services firm Colliers International. More than half of the company’s portfolio is in London, where iQ is the largest owner of student accommodation. All rights reserved. U.S. developer Greystar already has a small stake in the U.K. student accommodation business and is interested in buying more of the firm, according to a person familiar with the matter. Beyond the institutionally backed PBSA sector, private landlords who lease properties known as houses of multiple occupancy are also exposed, said Garrood. Blackstone’s first foray into luxury student dorms came in 2006 when it created Nido with the developer Generation Estates. • As a result of the acquisition of Pure Student Living, iQ is now the leading owner of private purpose built student accommodation in London • Invested £21m on refurbishing 25 properties, and adding 61 new beds in Summer 2018 • We opened our brand new 272 bed development in Newcastle which was fully occupied for the 2018/19 The sector has had a turbulent year following the imposition of a national lockdown in March that closed universities and prompted thousands of students to vacate their accommodation. With the iQ app, you can see everything in one place, including contracts, and Pay your next rent instalment on the go. The firm says its rent includes wifi, access to the gym and communal areas, alongside 24-hour security, insurance and utility bills. Booking data showed a 29% fall in U.K. student accommodation bookings by international students, according to a report published in October by international student housing marketplace Student.com and global market research firm Bonard. Some landlords' ability to withstand the impact of the pandemic on occupancy is likely to be tested as 2021 progresses, Duncan Garrood, CEO of Empiric Student Property, said in an interview. "If they experience financial distress, it will simply take capacity out of the market, which will probably be to our advantage," he said. IQ Student Accommodation is a student housing company that offers a range of semester contracts suitable for those on a short course, studying abroad on an exchange programme or taking a work placement on a sandwich year. UPDATE: 15th May 2020 – We can confirm the completion of the sale of iQ by Goldman Sachs Merchant Banking Division and the Wellcome Trust to Blackstone. "Acquisitions, Empiric's absence from the market may mean more room for others to establish or extend their footprint in the market, but JLL's Hillman advised investors to temper their expectations of what might be on offer. Keep up-to-date on what’s going on in the iQ community, with 24/7 access to our Reading Room for the latest news, offers and events. "If there is going to be distress, it's going to be focused on those smaller providers that have a quite highly geared relationship with the banks," he said. Some landlords' ability to withstand the impact of the pandemic on occupancy is likely to be tested as 2021 progresses, Duncan Garrood, CEO of Empiric Student Property, said in an interview. The short supply has been pushing up rents. The Blackstone Group Inc. closed a £4.7 billion acquisition, which was announced in February, of IQ Student Accommodation from Goldman Sachs Group Inc. and Wellcome Trust as the country emerged from its first national lockdown in May. Companies own and operate 18% of purpose-built student accommodation currently, while universities account for a further 18% and private rentals make up 42%. A friend’s daughter is a first-year student at Bath Spa University. At this time we are unable to offer free trials or product demonstrations directly to students. iQ Student Accommodation is one of the largest providers of student accommodation in the UK, and owns and manages 66 student premises in 27 towns and cities. Sky News has learnt that the owners of iQ Student Accommodation (IQSA) are close to hiring banks to oversee an initial public offering (IPO) in London. iQ Student Accommodation was established in 2016 and is now one of the largest providers of student accommodation in the UK. Thank you for your interest in S&P Global Market Intelligence! Nido was sold to the property firm Round Hill Capital six years later. Empiric's absence from the market may mean more room for others to establish or extend their footprint in the market, but JLL's Hillman advised investors to temper their expectations of what might be on offer. Local distinctiveness relates to the historic feu width and the relationship and presentation to the street. The Blackstone Group Inc. closed a £4.7 billion acquisition, which was announced in February, of IQ Student Accommodation from Goldman Sachs Group Inc. and Wellcome Trust as the country emerged from its first national lockdown in May. "They will either go bust or will have to sell very cheap. With the iQ app, you can see everything in one place, including contracts, and Pay your next rent instalment on the go. Investors such as private equity firms and Goldman, have been piling into purpose-built student housing, High rent bills have led to student rent strikes. The number of full-time students in the UK has reached a record level. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. This is projected to grow by a further 461,000 by 2030 to more than 2.2 million, with international students expected to make up 45% of the total. We’ve made booking your student accommodation for 2021/22 as flexible – and rewarding – as possible. Among the larger listed players in the market, Unite Group has already been active in 2020. Our stunning Hawley Crescent studios are smack bang in the middle of Camden, for students who want stylish independent living. She lives in a hall of residence allocated by the university but run by IQ Student Accommodation. U.K. student accommodation providers have been hit particularly hard by the number of international students who chose not to come for the 2020/2021 academic year due to travel restrictions and concerns about the pandemic. The pandemic appears to have had a significant impact on occupancy across the sector during the first semester of the 2020/2021 academic year. IQSA is among the largest providers of purpose-built student accommodation in the UK, with a portfolio value of £3.5bn as of September 2018 - the … The three largest listed U.K. purpose-built student accommodation providers, Unite Group PLC, Empiric Student Property PLC and GCP Student Living PLC, reported occupancy of 88%, 70%, and 69% respectively. 28,000 students Providing the best home-from-home environment from which over 28,000 students can confidently make the most of the opportunities during their university years. We apologize for any inconvenience this may cause. Empiric, which made its last acquisition in 2018, is unlikely to be tempted into the investment market should there be distressed opportunities available, said Garrood. iQ … Goldman Sachs Merchant Banking Division and the Wellcome Trust have completed the sale of iQ Student Accommodation to Blackstone for €5.22 billion ($5.7 billion). Goldman's role in the deal is unsurprising given that the Wall Street bank also owns a majority stake in IQSA. Blackstone has struck the largest-ever private property deal in the UK by agreeing to acquire the UK student accommodation firm iQ in a £4.7bn deal. The New York-based private equity … If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. Market Intelligence Last modified on Thu 27 Feb 2020 08.03 EST. Don’t miss out – just download the iQ app as soon as you check-in to your iQ room. /marketintelligence/en/news-insights/latest-news-headlines/uk-student-accommodation-sector-could-see-distress-in-2021-61754965 The company purchased a west London development site in November where it will build an 800-bed project for about £150 million. Goldman Sachs and Wellcome sell iQ Student Accommodation to Blackstone. Private investment management company Blackstone acquired the accommodation provider in February in a reported £4.7bn deal. ", latest-news-headlines Fill out the form so we can connect you to the right person. The biggest student hub in the Midlands, Birmingham is a hive of creative ideas and is constantly innovating. Thank you for your interest in S&P Global Market Intelligence! 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