Singapore Press Holdings Buys UK Student Housing Group for $233 Million
It's another bold move for the Singapore owned group.
Although they might be best known for their array of magazines, Singapore Press Holdings is also a major player in the world property market. With that in mind, the group recently closed a deal on a portfolio of student accommodation in the UK for $233. The portfolio comprises of 14 buildings across six cities including London, Birmingham and Sheffield with a capacity of 3,436 people.
The deal, which is expected to be completed this week, was a buy from Unite Group PLC and made in cash. “This cash-yielding acquisition will generate recurring cash flow, and is part of our ongoing strategy to diversify our business to new growth areas,” said SPH Chief Executive Officer Ng Yat Chug.
And while some may be scratching their heads as to why SPH would enter the student housing market, according to statistics it seems to be a prudent move. Latest reports state that current demand for accommodation in the UK stands at an average of 2.8 students per bed, with this increasing year on year.
The latest move represents the groups desire to diversify their revenue streams which saw the acquisition of a nursing home operation just last year.