Sunway RE Capital partners MBU Capital in £110m PBSA fund in UK

By RAHIMI YUNUS / Pic by BLOOMBERG

SUNWAY RE Capital Pte Ltd and MBU Capital have inked a transcontinental partnership to invest and manage purpose-built student accommodation assets (PBSA) in the UK with a combination of assets and readily deployable equity totalling £110m (RM629.6 million).

The company said the Sunway Bhd-backed PBSA fund was launched in anticipation of a post-Covid-19 pandemic rebound.

“We believe the UK is most likely to remain one of the world’s most popular student hotspots and demand from overseas for high-quality education is expected to rise once travel restrictions have been lifted.

“We’re optimistic about this sector and we’ve created a fund management team which has a track record of sourcing and delivering world-class institutional stock,” Sunway RE ED Dr Tan Kok Heng said in a statement yesterday.

The three-year fund is targeted at delivering an annual coupon of 6% to 8%, with an internal rate of return of 12%.

MBU Capital CEO Mohammed Iqbal said student occupancy rates during pre-pandemic were typically above 97% and a bounce back is anticipated in the near future while the number of full-time students in the UK has reached a record level and is growing.