Arlington Investors surpasses 10,000 bed milestone in £135m student property acquisition

Arlington Investors, the international investment firm, has acquired the operating portfolio of student accommodation provider Study Inn for £135m.

London-headquartered Arlington acquired 10 sites from Study Inn, spanning 1,494 rooms located in the Russell Group university towns of Coventry, Nottingham, Sheffield, and Cambridge.

This transaction takes Arlington’s student accommodation portfolio to over 10,000 beds and its total investment in the sector to over £750m.

The acquisition was partly financed by a 38-year bond, which was the fifth long-dated bond to be issued by Arlington, and was fully subscribed by funds managed by Aberdeen Standard Investments. The balance of the debt was provided by MetLife.

Sean McKeown, Arlington Advisors’ managing director, said: “Arlington are truly excited to reach the milestone of 10,000 beds and couldn’t be happier than to have done so with the acquisition of the Study Inn portfolio.

“Study Inn’s sites are located in some of the most prestigious seats of learning in the UK – and, in Cambridge’s case, the world. As a result, these places are experiencing strong international demand for good quality student accommodation.

“The Study Inn service model adds a strong alternate product to the Arlington portfolio and shows how students can receive exceptional service at a sensible price in Russell group cities where demand continues to grow.”

As part of the deal, Study Inn will continue to operate the Study Inn assets for Arlington under the Study Inn Brand, with the intention of rolling out the brand in other UK Cities.

Eddie Jefferson and Kieran Leahy, Study Inn co-founders, commented: “Arlington’s knowledge and experience in the sector make them an exceptional Investment partner for the Study Inn Group.

“Collaboration on this transaction has released significant funds for us to invest in our second portfolio which is already under way, with a 320-room scheme in Bristol due to open in Sept 2018.

“Continuing management and development of the Study Inn brand is something we are passionate about and Arlington’s understanding of our vision and direction was key to our decision to partner with them.”

Arlington was advised by McGuire Woods Lawyers, Grant Thornton, DWPF and TradeRisks.

Study Inn was advised by Knight Frank, Savills, Gateley’s and BDO.

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