GSA, which is an international student accomodation developer, operator and asset manager, said its investment management division had “exchanged contracts” for the deal, but that it is still subject to statutory, regulatory and board approvals.
Coral Portfolio was established in 2008 and offers investors exposure to the student accommodation sector and other prime real estate opportunities in the UK and overseas. The deal will extend Coral’s current presence in Luxembourg and London, with representative offices in Hong Kong and Dubai.
John Kennedy, co-founder of Coral Portfolio said: “GSA will bring an unrivalled level of expertise and access to new opportunities for our investors. There are huge opportunities ahead and this dynamic partnership will place us firmly at the forefront of these to build upon Coral’s successes.”
GSA meanwhile, describes itself as having “an unparalleled track record over 20 years, becoming a leading authority on the student accommodation asset class internationally”. The company has created 50,000 student study bedrooms in 38 markets, with ongoing development pipeline activity in Australia, Ireland, Japan, UAE and the UK.
Nicholas Porter, executive chairman of GSA Group said: “Over the next 10 years the number of students enrolling at university is forecast to grow by almost 100 million worldwide.
“This will continue the growing imbalance between supply and demand for student accommodation. The combination of an undersupplied market, high occupancy levels and stable income yields has made the sector attractive to investors looking for resilient capital and rental growth.
“We also see continued interest across a broad investor base to invest in the student accommodation asset class. I am pleased therefore that we are working together with Coral to support the further development and positioning of its investment strategy into key markets, both internationally and within the UK.”
During this time, John Kennedy, a co-founder of Coral, has often hit back at statements made by the companies which he believes are incorrect, arguing that property experts such as Savills and Knight Frank see continued value in the asset class.