The living asset class such as student accommodation and build-to-rent are expected to show the best financial performance in 2023, according to a new industry survey of BPF members, which was conducted by Ipsos in partnership with Grosvenor.
The results, gathered from over 100 UK property developers, funders and advisers, forecasts a split between ‘alternative’ and ‘traditional’ real estate asset performance over the next twelve months.
When asked to identify which three asset classes would outperform in 2023, almost half of respondents (47%) identified life sciences, 42% selected student accommodation, and 41% chose build-to-rent.
The key benefits of the alternative sector includes long leases, indexed rental uplifts, better covenants and the potential to diversify portfolios.
We advise on all aspects of alternative investment classes including:
- purpose built student accommodation (PBSA)
- build to rent (BTR)
- private rental sector (PRS)
- healthcare and life sciences
- later living and care homes
Our clients include property developers, investors, lenders and borrowers across these asset classes.
We have multi-disciplinary teams across these classes, putting together specialists from our commercial real estate, construction, corporate, dispute resolution, planning, and real estate finance teams. We believe our total focus on real estate brings specific benefits for our clients.
- The Collective/Cheyne Real Estate – acting on a high rise development being undertaken by a JV comprising The Collective and Cheyne Real Estate for serviced apartments/hotel use at 8 Baltimore Wharf, with a GDV in excess of £170m.
- Maslow Capital – Advising in relation to a £17.5m loan facility to fund the development works at 33 Parkside, Coventry, Warwickshire to create a 262 unit student block of 67,566 sq. ft, with a gross development value of £30m. The development is adjacent to the 33-acre purpose-built University campus in the heart of the city centre.
- Fragrance Hotels – acted for a Singaporean based hotel investor called Fragrance in their acquisition of circa 10 hotels in a variety of locations including Bath, Liverpool and Manchester. The project in Liverpool involved the acquisition of a long lease from the City Council of the Municipal Building in Liverpool for conversion to use as a hotel. The Fragrance projects threw up a variety of planning complexities.
- Acquisitions and leasebacks of GP surgeries for private clients, and currently acting on purchase and leaseback of an ambulance station.
- Anglo Suisse Investments – Acting on the sale of two prime central London freehold buildings, 95 and 97 Harley Street, W1, (each let on a long lease guaranteed by HCA International) to Aberdeen Standard Investments. Both properties were recently refurbished to provide state-of-the-art facilities and cancer treatments at the cutting edge of medicine. The properties are on the western side of Harley Street, surrounded by some of the world’s most prestigious medical practices, including The Harley Street Clinic, The London Clinic and The Heart Hospital.
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