London — London-based Hines has moved into the student housing market with the acquisition of six development sites in the U.K. from McLaren Property.
A new investment vehicle owned by a group of German pension funds and managed by Hines has entered into the forward-funding agreement for the portfolio valued at approximately $171 million. The portfolio consists of six sites in Cambridge, Oxford, Kingston, Aberdeen and two locations in Brighton, and will deliver more than 1,100 beds in total.
Planning consent to develop purpose-built student housing has been secured on four sites, with approval on the remaining two expected later this year. Construction work is expected to begin soon, with the developments expected for completion in 2017 and 2018. Hines expects to further strengthen its student housing platform, both in the U.K. and elsewhere, this year.
“We have been waiting for the right opportunity to enter the student housing market,” says Alex Knapp, managing director at Hines. “The combination of McLaren’s strong track record and the rare opportunity to secure a portfolio comprising assets in such prime locations make this a perfect entry for us into this exciting market sector.”
The company’s global headquarters is located in Houston, Texas.