Apache Capital Partners, the London and Gulf-based private real estate investment management firm, announces today that they have successfully disposed of Paris Gardens, London SW1, a premium student accommodation operational asset, to LetterOne, an investment vehicle, for £61 million and also acquired the existing share from their joint venture equity partner, McLaren, of their Central London premium student accommodation and office Joint Venture scheme on Paul Street, Shoreditch, London EC2. LetterOne was co-founded by Mikhail Fridman, German Khan and Alexei Kuzmichev.
Paris Gardens was originally acquired jointly by Apache Capital Partners and McLaren from Ireland’s National Asset Management Agency (“NAMA”) in 2011. This purpose built, direct-let, high specification student accommodation asset comprises 253 units and is strategically located in Southwark, Central London. It is 100% let for the current academic year and has achieved 100% occupancy since its first academic year.
The Paul Street acquisition values the total development at £108.6 million. The development was acquired in 2013 and will comprise 456 high quality units and 43,000 sq ft of office space, with completion by August 2015.
Following these transactions, Apache Capital currently have a portfolio of premium student accommodation schemes valued at £162.5 million over three assets comprising 1,299 units. Apache Capital have a total portfolio of assets under management valued at approximately £334.45 million.
Richard Jackson, Co-Founder and Managing Director, Apache Capital Partners, said: “We are delighted to have completed these two student accommodation transactions, which are in line with Apache Capital’s Social Infrastructure strategy to build high quality and scalable portfolios on a bespoke basis, before exiting to institutional investors. This has successfully generated attractive returns to our investors through our development and operational experience.
With substantial funds currently available, Apache Capital are set to double our assets under management throughout 2015 by continuing to build a portfolio of institutional grade assets across student accommodation, healthcare and dementia care, where we see value underpinned by macro-led fundamentals that are not just economic but also demographic, social and/or political that support longer term occupational and thus investment demand.”