In an update to investors dated 31 July, the company discussed a media report which suggested that a portfolio of assets belonging to the Opal group – formerly one of the UK’s largest student accommodation providers – was under offer to a US institution.
Brandeaux said, while the deal on the portfolio, which was historically valued at around £1bn, was “encouraging”, it noted “the potential for an acquirer in such circumstances to be looking to buy cheaply as part of a distressed sale”.
The company added: “In our view it is too early to draw any meaningful conclusions from this reported potential transaction as to the prognosis for the rest of the market.”
The update went on to say that the Student Funds “are not distressed sellers” and that, in fact, the business is progressing well, with 83% of rooms booked for the 2013/14 university year and nine of the 17 cities in which Brandeaux operates already 100% fully booked.
It said the property sales will “reflect the inherent value of these assets” but that the “outcome of such discussions [to sell the properties] cannot be predicted with certainty at this stage”.
Brandeaux, which took the decision to suspend its entire fund range in early July due to liquidity problems, also said it is in the process of selling a number of sub properties within its Ground Rent Funds and that “these transactions are on schedule for completion in the near future”.
The update follows one the company sent to investors on 1 July