Knightsbridge Student Housing has acquired a ‘prime’ 300-room student accommodation complex in Cardiff. The development, which is still under construction, has been purchased from Crosslane Student Developments for £5.5 million.
Located on Oxford Street near to the city centre, the complex will feature 164 en-suite cluster flats and 117 studios of various sizes once completed, in addition to communal space for the students.
The accommodation will be operated by Knightsbridge’s Student Housing Company and is expected to be completed in time for the start of the 2016/17 academic year.
"The acquisition from Crosslane represents just one of many that we hope to secure before the end of 2015, continuing our rapid growth in the UK market,” said Bob Crompton, chief executive of The Student Housing Company.
About 20 percent of Cardiff’s some 350,000 residents are students in the city’s higher education institutions, including Cardiff University and Cardiff Metropolitan University.
On a national level, real estate services provider Savills has forecast that student accommodation investments in the UK for 2015 will total £5.5 billion, more than double that of 2014.
The explosive growth of student accommodation in the UK is driven mostly by the government’s decision to remove caps on the number of students that universities can accept.
“The purpose built student accommodation sector looks set to continue its strong growth,” Savills said in its 2015 student housing report earlier this year. “Student numbers are recovering and are set to increase further with the removal of the cap. With increased numbers, there is the need for more supply.”