A number of Singaporean groups have entered the UK housing market recently, often for the first time. In March, Soilbuild Group made its first UK investment, a 124-unit student housing scheme in Liverpool, for an undisclosed sum.

Soilbuild director Lim Han Feng says: “We have been looking at the UK student accommodation sector for a while and believe it offers a viable and defensive investment proposition. The macro dynamics work in our favour and we look forward to adding similar investments in the near future.”

Last September, Singapore Press Holdings bought a 14-asset portfolio from student housing specialist Unite Group for £180.5m ($240m) in one of the biggest UK student housing deals last year.

Earlier last year Far East Orchard bought three student housing properties in Bristol and Liverpool totalling 622 beds for £55m ($73m). Far East now has more than 2,000 UK student beds.

Meanwhile GIC Private and Mapletree, both of which are amongst the world’s top 10 investors in student housing, have also invested in the sector in the UK.

Harry Philpott, associate director, cross-border investment at Savills, says: “Student housing has strong income characteristics with a range of global players already holding diversified portfolios across the US, UK, Australia and Europe. The UK is one of the most established student housing markets, underpinned by a number world leading universities attended by an international and increasingly mobile demographic.”

“The factors that make it attractive to Singaporean investors will also be attractive to other Asian investors who are looking for an income play.”

Savills research shows global student housing transactions volumes have grown more than fourfold over the past decade to $17bn in 2018 and the UK is one of the most developed markets, backed by substantial numbers of overseas students, who are most likely to use specialist accommodation.

Between 2007 and 2017 the number of internationally mobile students grew by 64% to over 5m, according to UNESCO. The US, UK and Australia are host to the largest number of them.

Further reading:
UK Student Housing Report

Contact Us:
Harry Philpott