Global property consultancy Knight Frank has facilitated the sale of a purpose-built student accommodation (PBSA) asset in Newcastle for £28.75 million. Located in the vibrant Quayside area, the property comprises 416 beds and offers a mix of en-suite rooms and studios, along with amenities such as a cinema room, laundry facilities, and bicycle storage.

“This opportunity provided a rare chance for investors to acquire an institutionally attractive and well-located operational PBSA scheme in a prime regional market,” said Luke Shackleton, Associate in Knight Frank’s Student Property team. “Newcastle continues to benefit from rising student numbers and a constrained development pipeline, placing it high among investors’ target markets. We are delighted to have brokered the deal between our client and the purchaser.”

The transaction saw Knight Frank advising IP Investment Management (IPIM), the vendor, with Curation Capital, a UK real estate investment manager, as the purchaser. Curation Capital is a subsidiary of Steyn Group and has been actively acquiring PBSA assets in cities such as London, Manchester, Nottingham, and Birmingham.

Michael Haverty, Partner at Curation Capital, expressed his enthusiasm about the acquisition: “We are delighted to have acquired our first PBSA asset in Newcastle. The city’s market dynamics present an attractive business case. This acquisition allows us to continue to expand and diversify our UK student accommodation portfolio. We look forward to working closely with our development and operational partners, Forge Development and Almero Student, on the repositioning of this asset.”

IPIM, based in Hong Kong, acquired the Newcastle building in 2018, adding 30 additional beds to the scheme and replacing the operator. The company has developed over 2,740 PBSA beds across the UK, totalling over £315 million in assets.

Selina Williams, Executive Director at IPIM, commented on the transaction: “We are pleased to have worked with the team at Knight Frank to successfully execute the sale of this high-quality PBSA asset in Newcastle. The property has performed well and attracted strong interest from investors, reflecting the positive fundamentals of the UK student housing market. This transaction represents an attractive outcome for our investors, and we look forward to exploring new opportunities to continue growing our PBSA portfolio.”

Newcastle, home to Newcastle University and Northumbria University, has a student population exceeding 52,000 but faces a shortage of student accommodation, with 60% of students unable to access PBSA dwellings. This gap has led to high demand for quality student housing in the city.