Dallas-based private equity firm, Lone Star Funds, has announced that an affiliate of Lone Star Real Estate Fund VII, LP has agreed to purchase nine purpose-built student accommodation (PBSA) assets in the UK, from affiliates of Unite Students, for £212m.

The portfolio comprises 3,656 beds across nine PBSA assets in five university markets: Aberdeen, Leicester, Leeds, Nottingham, and Sheffield.

Unite Students owns, manages, and develops PBSA.

Jérôme Foulon, global head of commercial real estate for Lone Star, said: “This transaction aligns with Lone Star’s global strategy of investing in resilient sectors of the housing market where we can leverage our expertise to unlock long-term value.

“We continue to see attractive opportunities in the UK’s PBSA sector, which benefits from the growing student population demand and a continued shortage of high-quality accommodation.”

The deal is scheduled to close in August.

This is Lone Star’s second transaction with Unite in the past three years.

With this latest investment, Lone Star’s PBSA portfolio now exceeds 10,000 beds in the UK market.