Scape and APG close £500m joint venture to expand into mainstream rental market
Scape, the global city living specialist, announces today that it has closed a £500m joint venture with pension investor APG (Algemene Pensioen Group).
The partnership will establish Scape as one of the world’s largest developers and operators of purpose-built student accommodation (PBSA), whilst also fueling the company’s expansion strategy into mainstream living as it takes its new Scape Living concept to a wider market.
The joint venture is seeded with c.1,000 PBSA beds in London and the South-East, a c.£250m mixed use residential and PBSA led development scheme in Canada Water, and the first Scape Living building in Guildford, due to open in the first half of 2021.
As a global operator of PBSA that started in the UK in 2008, Scape now has properties located around the world in leading academic cities, providing an inspirational place for people to live. The success of the current Scape student offering has led to the demand for a similar high-quality city and community-based living proposition for city dwellers who are currently faced with the choice between location or quality of accommodation to live in prime city centre locations.
Nigel Taee, Scape Founder and Global Chairman said: “Our student proposition is just the beginning for Scape. We have ambitious plans for the next few years as we develop the Scape offering and start to move into new territories. Scape Student has gone from strength to strength over the last 12 years. We will continue to develop this both in the UK and globally whilst also extending our proposition to provide quality accommodation for city dwellers with Scape Living.”
Robert-Jan Foortse, Head of European Real Estate at APG Asset Management commented: “On behalf of our pension fund clients, we are pleased to announce the enhancement of our successful relationship with Scape that started for APG as founding investors of the Australian Scape venture. We look forward to building on this global partnership with Scape by supporting its UK expansion. It is our belief that the UK student and the UK housing market offer very compelling investment opportunities that provide our clients with long term stable returns. Both face long term favorable demand through continued trends such as increasing global international student mobility, growing domestic student population and growing household formation. The continued attraction of the UK education market and the limited space available in cities requires more flexible and high-quality accommodation with trusted brands such as Scape. We see a valuable opportunity with the business to expand Scape’s knowledge of high specification property to bringing quality living to more people in the UK through Scape Living.”