KKR Acquires Seven Student Accommodation Assets in UK
KKR, a leading global investor, and Inhabeo on Thursday announced the acquisition of a high-quality portfolio of seven purpose-built student accommodation (PBSA) assets from Curlew Student Trust II (funded by clients of CBRE Investment Management) for approximately $307.37 million.
KKR is making the investment through its European Core+ Real Estate strategy and other managed funds and accounts.
The transaction follows KKR’s recent purchases of high-quality PBSA assets across its real estate strategies, including a 544-bed Student Housing Development near the University of Warwick earlier this year, 819-bed PBSA scheme in Bristol and 494-bed portfolio of PBSA assets in the Greater Copenhagen area last year.
The 2,179-bed portfolio serves students across seven UK cities with strong university presence. The properties were newly developed by Curlew Student Trust II with completion dates between 2020 and 2022.
They feature primarily en-suite units, with excellent locations and attractive amenities. The portfolio has enjoyed strong demand with approximately 80% of units let to undergraduates and over 50% of units let to domestic students. The skew towards affordably-priced, high-quality schemes position the portfolio to benefit from record domestic enrolment in UK universities.
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, said that they were pleased to add a UK PBSA portfolio of rare scale and calibre to KKR’s portfolio, underscoring their conviction in high-quality living spaces within Core+ strategy in Europe.
“Curlew have strategically developed a collection of assets with differentiated positioning in their local markets. We believe our continued investment in these properties will position them to benefit from strong enrolment in British universities and favourable tailwinds through outsized demand for modern accommodation experiences in great locations,” Avanzo said.
Inhabeo CEO Ross Netherway said that this transaction marks another notable milestone for their European living sector platform with KKR which now exceeds $1.07 billion.
“We intend to continue to grow our diversified portfolio of residential investments in strategically chosen assets, subsectors, and geographies,” Netherway added.
London Most Attractive
London has been named the most attractive city in Europe, followed by Paris and Berlin, for PBSA investment in the inaugural Student City Index by PATRIZIA, a global investment manager in real assets.
Explosive growth in European student numbers in the past decade has driven strong demand for PBSA, a demand that continues to outpace supply. As a result, a broader and more diverse PBSA investment universe is emerging, requiring a granular, city-level approach to effectively calibrate risk and return.
Antonio Marin-Bataller, Head of Investment Management Living at PATRIZIA, said that student housing is fast becoming a cornerstone of institutional living strategies. This research supports smarter capital deployment by highlighting where strong fundamentals align with liquidity, and why a city-by-city lens is critical for success in this dynamic market.
“With global megatrends such as urbanisation, international mobility and the demand for higher education accelerating, PBSA stands out as an attractive alternative within the living sector with a very resilient outlook,” he added.
The research by PATRIZIA provides comprehensive, data-driven ranking of over 180 university cities across 21 European countries, offering a city-specific lens to help institutional investors identify the most compelling PBSA markets based on demand fundamentals, liquidity and long-term growth potential.
