From the Business Insider…
The Kexgill Group has acquired 87 student houses from the University of Hull for an undisclosed eight-figure sum.
The properties, which are located adjacent to the main university campus form part of the newly created ‘University Quarter’ complementing Kexgill’s existing student halls in the city. They are subject to a four-year hard nomination agreement.
Under the terms of the deal, the student accommodation specialist secured debt finance from real estate funder ICG-Longbow for the acquisition and refurbishment programme, which will take place over a five-year period.
Kexgill, which currently has nine branches throughout the UK as well as a presence in Germany, launched a five-year expansion programme in 2015.
Richard Stott, managing director of Kexgill, said: “We are proud to be working closely with the University of Hull forming an effective partnership of which the purchase of these houses forms an essential part.
“It is all about improving the experience of students attending Hull be it through the university’s new build Halls or our refurbished properties adjacent to the campus. It is a dynamic changing market and students deserve a full range of price options for their accommodation to enjoy Hull at its best.”
Cushman & Wakefield advised the University of Hull. Simon Lowe, associate director in its student housing team, said: “Kexgill will refurbish the assets and house the university’s students for the next four years under a nominations agreement before they revert to a direct let model serving the returning student market.
“This is the first phase of an ongoing project to assist the university improve the quality and quantity of its student accommodation.
“The university has built 560 new student beds for 2016/17 ‘The Courtyard’ and we are currently engaged in advanced discussions to procure a further 1,300 new build student bed spaces on campus.”
The York office of Andrew Jackson Solicitors advised The Kexgill Group on the acquisition, led by corporate partner Philip Ashworth and including Helen Mellors, Matthew Smith and Grace Howell.
Ashworth said: “It is a delight to assist the team at Kexgill in a transformational transaction for their business; especially as it comes 25 years after my first instruction from Mike Lee at Kexgill.”
ICG-Longbow was advised by the London office of Freeths and Walker Morris acted for the University of Hull. Kexgill’s tax advice was provided by PwC.
Pictured (L-R): Jill Cooper, University of Hull; Philip Ashworth, Andrew Jackson Solicitors; Richard Stott, The Kexgill Group; Michelle Fang, The Kexgill Group