Global real estate investment management firm Heitman has invested in the Hollis Building, Bath, a 120-bed student housing development in an off-market transaction with Alumno Group, a leading student housing developer based in London.
Heitman made the investment in connection with its global strategy. Financial details were not disclosed.
The asset is located to service both Bath Spa University and the University of Bath and will provide housing to the city’s dynamic and growing student population. The development will feature a biodiverse green roof and photo-voltaic panels to meet part of the project’s energy needs.
'We are pleased to continue our partnership with Alumno Group and deliver premium student housing assets for the UK’s growing domestic and international student populations,' said Caleb Mercer, Heitman managing director of European real estate investment. 'The need for student-specific housing remains significant as demand for space continues to outpace supply.'
He added: 'The resiliency of purpose-built student accommodation has been clearly evidenced over the past year. Demand for student housing remains intact and is expected to accelerate as the sector continues to benefit from steady occupancy gains, strong investor interest, and high barriers to entry.'
Said Gordon Black, Heitman senior managing director and global portfolio manager: 'As we continue to construct our global portfolio against the background of a volatile market, we are focused on acquiring high-quality assets that provide robust portfolio risk diversification—including by region, property type, and demand driver.
'The investment in Bath fits that profile as student housing continues to attract delinked demand and the UK remains a pillar of higher education globally.'
David Campbell, founder and managing director of Alumno added: 'We are delighted to be working with Heitman again on this exciting new project and building on our solid relationship. The need for good quality, purpose-built student accommodation in the UK remains very high, with the University of Bath supporting the planning application for this scheme.'
Upon completion, Hollis Building will be operated by Homes for Students, the UK’s largest independent student housing operator.