Partners Group and Aboria Capital have completed the acquisition of a five-asset, 1,570-bed purpose-built student accommodation portfolio from HSBC Asset Management for around £165 million, in one of the largest PBSA transactions completed in the UK this year.
The deal was structured as a joint venture between Partners Group, Aboria Capital, and the Downing family office, alongside a UK single family office. It marks Aboria's first acquisition since the platform launched in partnership with Downing, one of the UK's largest privately owned property businesses and an early pioneer in the PBSA sector.
The five assets span four university cities: The Arch, Liverpool (241 beds); The Electra, Liverpool (90 beds); The View, Newcastle (444 beds); The Lyra, London Acton (209 beds); and The Railyard, Cambridge (586 beds). The portfolio is 98.2% let for the 2026/27 academic year and offers concentrated exposure to Russell Group institutions.
Partners Group invested through its real estate secondaries strategy, which targets quality income-producing assets via GP-led secondaries, LP-led secondaries, and other liquidity solutions. The firm is currently raising its fifth real estate secondaries programme, targeting USD 1.5 billion.
The acquisition reflects a wider structural case for UK PBSA that the joint venture partners cite in their rationale. Undergraduate acceptances reached record levels for 2026/27, with nearly 42% of places taken at higher tariff universities, the highest share on record. International acceptances at those institutions rose 5.5% year-on-year.
Against that demand backdrop, a large share of existing UK PBSA stock was built to specifications that no longer meet current student expectations or energy standards, creating the refurbishment opportunity the venture intends to pursue.
The joint venture plans bedroom and amenity upgrades across the portfolio to support rental growth, drawing on proprietary data and marketing insight from across the partnership. Aboria's model combines investment management with Downing's refurbishment and operational capabilities, covering the full lifecycle from acquisition and asset management through to day-to-day operations.
"We have strong conviction in this portfolio, with each of the assets strategically located across the UK's leading university cities," said Henrik Orrbeck, global co-head of real estate at Partners Group.
"We have a track record in the student accommodation space and continue to see strong relative value in the UK market, reflecting the country's leading university offering and structural shortage of high-quality accommodation stock. We are pleased to close this latest investment in our real estate secondaries strategy, which adds to recent transactions across the industrials and logistics sectors globally."
"This is an exceptional portfolio of scale and quality, made even more compelling by the depth of knowledge we already have of the assets," said Jessica Hardman, chief executive of Aboria Capital (pictured here with co-founder Bay Downing).
"Our vertically integrated model means we are close to every asset from day one, aligning investment strategy with day-to-day operations. That allows us to protect and grow income, sustain occupancy and identify opportunities to create value throughout the investment lifecycle. The strength of investors backing Aboria for this acquisition reflects the enduring appeal of UK student housing to global institutional and private wealth capital.
"The UK combines a world-leading university sector with resilient student demand and a persistent shortage of high-quality accommodation, creating compelling long-term fundamentals. We look forward to investing in these assets and enhancing the experience for the students who call them home."
Tim Williams, head of real estate investment at HSBC Asset Management, said: "We are pleased to complete this transaction following an extended hold period. Having acquired many of the assets through funding and development, the sale delivers a positive return of capital to our investors.
"Throughout our ownership, the portfolio has consistently achieved strong occupancy levels, reflecting the quality of the locations, the strength of our university partnerships, and the expertise of the management team."
HSBC Asset Management was advised by CBRE and Pinsent Masons.
