Legal & General has acquired a 245-bed purpose-built student accommodation scheme in Southampton for £43m, as institutional capital continues to target stabilised PBSA assets in supply-constrained markets.
Stanley Studios, sold by a Brookfield Asset Management real estate fund, comprises 177 studios and 68 two-bed apartments and has been operational since the 2021/22 academic year.
The scheme, located a 13-minute walk from the University of Southampton, offers a range of amenities including study space, gym, cinema and communal areas. It is operated by Prestige Student Living.
The acquisition takes L&G’s investment in the student housing sector to just under £400m over the past two years, as the investor continues to build exposure to operational living assets.
Neil Dovey, head of annuity transactions, real estate at L&G, said the firm would continue to target locations with strong underlying demand fundamentals.
“We will continue to target those locations where the student population is expected to increase in line with the growth plans of the main universities in the city,” he said.
The deal reflects continued investor appetite for high-quality PBSA assets, particularly in regional university cities where development pipelines remain constrained.
Alistair Kemp, director in Savills’ operational capital markets team, said limited new supply in Southampton was supporting demand for existing schemes.
“Southampton’s PBSA development pipeline remains notably limited, contributing to a strong demand profile for high-quality, well-located assets,” he said.
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