Living for students
"PBSA is countercyclical, with student numbers increasing in times of economic downturn, ensuring strong levels of demand."
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- Savills, 2022
MARKET
Tenant demand for high-quality student accommodation is strong, especially in under-supplied, albeit internationally popular, university cities.
PBSA yields in 2025 showed strong investor interest, with prime yields compressing (moving lower) in Europe, reaching around 4.0-4.7% by late 2025, supported by high occupancy (>98%) and strong rental growth, though some markets, like the UK, saw initial yield compression followed by renewed confidence, with strong investment volumes, especially in large portfolio deals and value-add opportunities, indicating a resilient and growing asset class despite construction cost challenges.
UNIVERSITY STUDENT MARKET NUMBERS per annum:
EU
(2023):
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c. 18.8m total students
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c. 1.76m (9%) total international students
ITALY
(2024-25):
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c. 1.9m total students
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c. 96,000 (5%) international
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UNITED KINGDOM
(2022-23):
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c. 2.9m total students
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c. 758,000 (26%) international
INVESTMENT
Student numbers are continuously increasing and there remains a clear need for quality PBSA, a proven countercyclical asset class, representing good investment opportunities.
The European PBSA investment market, in particular, is experiencing strong, continued growth, driven by high student demand and investor appetite, with major capital flowing in to address significant undersupply, particularly in the south (e.g. Spain & Italy) and established markets, though concerns about rent controls and rising costs remain key considerations. Investors are targeting significant portfolio expansion, seeing PBSA as resilient, and consolidation within the fragmented market is expected.
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PBSA has become a top 'living' sector for European investors, surpassing multifamily housing in attractiveness, with plans to significantly increase bed count over the next 2-5 years, according to Savills.
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High Demand, Low Supply: A persistent shortage of beds (a 3.1m bed gap across Europe) fuels demand, supported by rising international students, population growth, and affordability issues in traditional rentals, making PBSA a vital housing solution.
With offices in Italy and the UK, we are pioneers, addressing the serious imbalance between supply and demand, particularly for international students in European historic cities. Italy and the UK are rated in the US as the world's top international student destinations.
We are working with several institutional investors and welcome approaches from other interested parties.
DEVELOPMENT
We acquire, develop, refurbish, invest in and operate European property, with a primary focus on delivery as modern PBSA and other forms of communal living.
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Assets acquired to date are located in the historic centre of Florence, Italy. These deliver 331 beds, positioned in prime locations, benefitting from quick access to several academic institutions, and public transportation including the train and tram station.
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We are researching, negotiating and well advanced in purchasing other PBSA opportunities in university cities throughout Italy and Europe.
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These comprise:
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development opportunities for us to implement, with planning permission, already obtained;
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developments for purchase on practical completion;
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developments for forward-funding;
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other proposals tailored to investor requirements.
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We also seek to build relationships with regular development partners to work with us in joint ventures to enable a seamless process from initial site evaluation through to the first student checking in.
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Please be in touch for more detail.
