Some landlords' ability to withstand the impact of the pandemic on occupancy is likely to be tested as 2021 progresses, Duncan Garrood, CEO of Empiric Student Property, said in an interview. We apologize for any inconvenience this may cause. In the past decade, iQ Student Accommodation has provided accommodation to more than 28,000 students in 67 sites across 27 UK cities. Investors such as private equity firms and Goldman have been piling into purpose-built student housing in recent years, as demand continues to outstrip the number of beds provided by 30%. The U.K. is one of the largest markets in the world for international students, who make up 20% of the total student population, 54% of full-time taught postgraduates and 49% of full-time research degree students. Goldman's role in the deal is unsurprising given that the Wall Street bank also owns a majority stake in IQSA. IQ Student Accommodation is one of the leading providers of student accommodation in the UK, and owns and manages 66 student premises in 27 towns and cities, catering to around 28,000 university students from all over the world. It owns and operates 67 student premises across the country, with more than 28,000 beds and plans to add a further 4,000. "The, U.K. student accommodation providers have been hit particularly hard by the number of international students who chose not to come for the 2020/2021 academic year due to travel restrictions and concerns about the pandemic. The Blackstone Group Inc. closed a £4.7 billion acquisition, which was announced in February, of IQ Student Accommodation from Goldman Sachs Group Inc. and Wellcome Trust as the country emerged from its first national lockdown in May. Rob Roger, iQ’s chief executive, said he was looking forward to “working with a partner of Blackstone’s calibre, as we continue to deliver our ambitious growth plans”. Available for everyone, funded by readers. Please contact your professors, library, or administrative staff to receive your student login. The firm was formed in 2006 with Wellcome as one of the founding investors, and merged with Goldman Sachs’ student housing business in 2016. To date, we have worked on a total of 23 of IQ Student sites and so were delighted to be invited again to be part of the delivery team reimaging the IQ Student accommodation experience. iQ Student Accommodation was established in 2016 and is now one of the largest providers of student accommodation in the UK. Open the door to more with iQ. Sky News has learnt that the owners of iQ Student Accommodation (IQSA) are close to hiring banks to oversee an initial public offering (IPO) in London. Keep up-to-date on what’s going on in the iQ community, with 24/7 access to our Reading Room for the latest news, offers and events. Don’t miss out – just download the iQ app as soon as you check-in to your iQ room. Last modified on Thu 27 Feb 2020 08.03 EST. Refer a friend and you’ll both benefit from an additional £100 cashback each. An en-suite room in Bloomsbury in the centre of the capital costs £460 a week. Despite the increased investment, there were fewer than 650,000 student accommodation beds for 1.8 million undergraduates and postgraduates in the UK last year. The successful rollout of a COVID-19 vaccination program could also be key to putting struggling operators in "a more comfortable position with their lenders" by Q2, he said. U.K. student accommodation providers have been hit particularly hard by the number of international students who chose not to come for the 2020/2021 academic year due to travel restrictions and concerns about the pandemic. "It's still not clear how many international students are actually going to turn up [this academic year]," said Philip Hillman, chairman, living capital markets at real estate services firm JLL. Investor interest in U.K. student accommodation has remained strong in the face of the pandemic. Student numbers are at an all-time high and are expected to climb. "Acquisitions would be lower down our list [of priorities] than other items," he said. UK student accommodation sector could see distress in 2021, Banking Essentials Newsletter December Edition, Part 2, Banking Essentials Newsletter - November Edition, University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts. The U.K. is one of the largest markets in the world for international students, who make up, [this academic year]," said Philip Hillman, chairman, living capital markets at real estate services firm JLL. Private investment management company Blackstone acquired the accommodation provider in February in a reported £4.7bn deal. Book now to receive £200 cashback. "Acquisitions, Empiric's absence from the market may mean more room for others to establish or extend their footprint in the market, but JLL's Hillman advised investors to temper their expectations of what might be on offer. © 2020 Guardian News & Media Limited or its affiliated companies. THE BUSINESS TIMES iq student accommodation - Find iq student accommodation News & Headlines, insight and analysis in Singapore, Asia-Pacific & global markets news at The Business Times. "But nobody is predicting a huge wave of distress like what you are seeing in the retail and hospitality sectors. “With student numbers in the UK at an all-time high, and growth set to continue in the coming years, there has never been a more exciting time to be a leading player in the student accommodation sector.”. High rent bills have led to student rent strikes in the past. Goldman Sachs Merchant Banking Division and the Wellcome Trust have completed the sale of iQ Student Accommodation to Blackstone for €5.22 billion ($5.7 billion). "If they experience financial distress, it will simply take capacity out of the market, which will probably be to our advantage," he said. A friend’s daughter is a first-year student at Bath Spa University. Investor interest in U.K. student accommodation has remained strong in the face of the pandemic. IQ Student Accommodation is a student housing company that offers a range of semester contracts suitable for those on a short course, studying abroad on an exchange programme or taking a work placement on a sandwich year. It's home to five universities and three iQ Student Accommodation sites - Penworks House, Broderick House and Studios 51. At iQ, rents start at £75 a week in Bradford, and £195 a week in London. Local distinctiveness relates to the historic feu width and the relationship and presentation to the street. Much will depend on what happens at the beginning of 2021. iQ Student Accommodation is one of the largest providers of student accommodation in the UK, and owns and manages 66 student premises in 27 towns and cities. If distressed opportunities do arise, there should be more than enough appetite in the market. "There will, S&P Global China Credit Analytics Platform, Differentiated Data to Make Informed Decisions. Nido was sold to the property firm Round Hill Capital six years later. The company purchased a west London development site in November where it will build an 800-bed project for about £150 million. She lives in a hall of residence allocated by the university but run by IQ Student Accommodation. Investors such as private equity firms and Goldman, have been piling into purpose-built student housing, High rent bills have led to student rent strikes. The first Nido tower, with 1,000 beds, was opened that year in King’s Cross, London, followed in 2010 by a 33-floor tower in Spitalfields, east London with a 24-hour gym and a pizza vending machine. iQ … You're one step closer to unlocking our suite of comprehensive and robust tools. The New York-based private equity firm is buying iQ from the US investment bank Goldman Sachs and the health research charity Wellcome Trust. Beyond the institutionally backed PBSA sector, private landlords who lease properties known as houses of multiple occupancy are also exposed, said Garrood. The transaction remains subject to regulatory approval. Goldman Sachs and Wellcome sell iQ Student Accommodation to Blackstone. Our stunning Hawley Crescent studios are smack bang in the middle of Camden, for students who want stylish independent living. Some smaller, independent student accommodation providers in the U.K. could go bust in 2021 as a consequence of the COVID-19 pandemic, offering opportunities to some larger players, according to industry experts. "If there is going to be distress, it's going to be focused on those smaller providers that have a quite highly geared relationship with the banks," he said. ", latest-news-headlines We’ve made booking your student accommodation for 2021/22 as flexible – and rewarding – as possible. The sector has had a turbulent year following the imposition of a national lockdown in March that closed universities and prompted thousands of students to vacate their accommodation. More than half of the company’s portfolio is in London, where iQ is the largest owner of student accommodation. Several of the sector's larger players offered affected students rental refunds for the period. Between March and July, eight PBSA deals completed at a total of £280 million, according to a September report by real estate services firm CBRE. 26th February 2020, London – Goldman Sachs Merchant Banking Division (“Goldman Sachs”) and the Wellcome Trust (“Wellcome”) today announced the sale … iQ Student Accommodation & Londonist partner Accommodation agency Londonist has announced a partnership with housing provider iQ Student Accommodation. Fancy your own private bathroom and kitchen? One of our representatives will be in touch soon to help get you started with your demo. Despite the resultant fall in demand for student beds, the sector is not expected to see any significant signs of distress before the end of 2020, Banks have "stayed their hand" in situations where student accommodation providers are in breach of either, Among those vulnerable are developers unable to secure funding due to tighter lending criteria are also exposed, said Hillman. Blackstone has struck the largest-ever private property deal in the UK by agreeing to acquire the UK student accommodation firm iQ in a £4.7bn deal. Some landlords' ability to withstand the impact of the pandemic on occupancy is likely to be tested as 2021 progresses, Duncan Garrood, CEO of Empiric Student Property, said in an interview. The property firm is one of the main players in the rapidly growing UK student housing market. • As a result of the acquisition of Pure Student Living, iQ is now the leading owner of private purpose built student accommodation in London • Invested £21m on refurbishing 25 properties, and adding 61 new beds in Summer 2018 • We opened our brand new 272 bed development in Newcastle which was fully occupied for the 2018/19 The New York-based private equity … Booking data showed a 29% fall in U.K. student accommodation bookings by international students, according to a report published in October by international student housing marketplace Student.com and global market research firm Bonard. Fill out the form so we can connect you to the right person. iQ Student Accommodation 1mo We are proud to introduce the latest addition to our portfolio - Weaver Place in Coventry. Company profile page for iQ Student Accommodation Ltd including stock price, company news, press releases, executives, board members, and contact information With the iQ app, you can see everything in one place, including contracts, and Pay your next rent instalment on the go. A further £750 million - £1 billion of deals were expected to transact by the end of the month, at which point investment in U.K. student accommodation stood at just over £5 billion, less than £1 billion short of the record set for total annual investment in 2015. The pandemic appears to have had a significant impact on occupancy across the sector during the first semester of the 2020/2021 academic year. React News Ltd The Monument Building 11 Monument Street London EC3R 8AF Thank you for your interest in S&P Global Market Intelligence! Rents for en-suite accommodation have been at 16% above the rate of inflation since 2014, according to a recent report. “With student numbers in the United Kingdom at an all-time high, and growth set to continue in the coming years, there has never been a more exciting time to be a leading player in … We noticed you've identified yourself as a student. Banks have "stayed their hand" in situations where student accommodation providers are in breach of either loan-to-value or interest coverage ratio covenants, he said. iQ is proud to have been part of the higher education ecosystem for ten years - Reimagining the student accommodation experience and giving our residents their best year yet. The number of full-time students in the UK has reached a record level. "And if it is going to occur, it may well be around Q1 or Q2 next year.". 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